Of those critisms by the the FTA, I only agree with the issues addressed to ROCC. Failing to confer and take advice from your resident experts in the field is recipe to repeat the same mistakes.
On the other items, i agree with farecard. Running shorter trains slower won't address your grounding issues. The dirtier your insulators get, the less current is required to cause arcing. If you don't clean your insulators regularly, this WILL happen again, even with two car trains running.
Speaking of grounding, I can tell you that Thursdays incident was not an exploding insulator, it was a grounded stud. Took a look at the insulator midmorning of the incident while the insulator was still there, and no more that 20% of it was melted/damaged. The stud in thr front was gone. The back of the insulator and stud was fine.
If you look at the video of the incident, focus on the top right corner just in the tunnel when the insulator goes. You will see a separate 'explosion'. Sources tell me that the second flare was from a rail fastener stud on the opposite rail. You can yell that from the directionality of the sparks thrown in the explosion. I can't think of many theories where a insulator stud and a rail stud go up at the same time aside from a grounding issue.