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Natural extensions also exist north--to Old Dominion U. and Norfolk Naval Base--and east--to Virginia Beach.
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The most "natural" extension is to Virginia Beach. That extension, according to gMaps, follows an existing rail right of way. I think the issue is just getting some regional coordination going on. I don't know a whole lot about the different transit agencies there, but providing a full-fledged commuter-light-rail project between two cores (in different municipalities) could be politically difficult, if not a resounding intergovernmental success.
From what I've read, it seems most people there like the idea in general, but complain that it doesn't get them where they want to go, that because this is a very obvious first stage of system built to be extended upon.