I don't have the exact citation but I have heard that headways have been increased on the El as well as other lines (see the thread on the Rte. 100 local-service only policy, for ex.) It's simple economics - somewhat fewer riders during the summer, no apparent action from Harrisburg to plug the deficit, so try to save some bucks by running fewer trains. Of course, by that reasoning, the savings could be maximized by running no trains at all, but that's another topic...
The cloth seats really were mind-boggling from the start. Yes, they were more comfortable than plastic but all it took was a few yahoos to dump a soda here and a pizza slice there and presto, it's Grot City.
AFAIK plans for the west-side renovation are still in place. There has been a lot of back-and-forth over the effects on the businesses whose foot traffic has been reduced by the construction work, and there is of course the swamp of pay-to-play politics to negotiate. Progress could be slowed but I don't have any info one way or the other.
I agree about the later service, but you probably won't see anything till there's more money in the coffers, and maybe not then given the mindset at 1234. I found it interesting that when the Inky ran a survey of reasons why new college grads left the city, lousy public transit was fairly high up, maybe 4th or 5th on the list. When I worked in CC, there were several times I got into, shall we say, disagreements with New Jersey coworkers who couldn't understand why it wasn't practical for me to stay "just a few more minutes" when we had a late project. I literally had one person say "What's the problem? There'll be another train every 10 minutes or so till midnight, right? Doesn't SEPTA work like PATCO?"
PHHHTTBBBTTTT!!!!!!!!!!!