No, I don't believe this project is a fantasy: it is very do-able. It is unfair to compare the Gotthard tunnel through a large lump of rock with the SwissMetro tunnel, which is essentially a sub-surface tunnel, similar to the 27 km LEP tunnel across the French/Swiss border for the CERN experiments. This is also the same technique successfully used in Lausanne for the stretch of the Lausanne-Echallens-Bercher railway between Chauderon and Flon (granted it disrupted traffic around Bel-Air for a couple of years).
I agree that a full-scale prototype has not yet been built. And the simulations have been on-going for decades and were fully confirmed by the practical scale model. This is not just a recent idea to suddenly confront a new problem. Sure, 25 years ago, many said it couldn't be done. Today, the majority of experts agree that it is do-able.
The main advantage is that the energy required for transporting passengers is a fraction of that of any other method that I know of. Why? Because there is little wind resistance and no friction. The speed is almost an accidental side-effect.
I would dearly love this island to have the guts to propose a SwissMetro joining Nicosia to Larnaca to Limassol to Paphos. We very badly need a good public transport system here and the distance between the towns is just right for it. Furthermore, there is only region along this line where the geology may render a surface tunnel a little difficult to construct, for about 10 km, some 20 km west of Limassol. However, this is a pipedream; Cypriots are not noted to be courageous in their technological decisions.
