San Michele, the cemetery island of Venice in Italy:
And this is how you get there:
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The Happy Hermit 
While on holiday in Venice, my partner and I stayed in Lido. The prices were much better, and the island was more relaxed. Vaporetto runs 24×7 from there!
I feel that Venice is basically Disneyworld at this point. Don’t most people working on the islands commute from the mainland? You have beautiful old merchant houses on the Grand Canal which are not practical to renovate.
I must say that our night train from Munich had an air of the Orient Express (to this American at least) – departing Munich late at night and arriving to the lagoon in morning.
Yes, I think most people commute nowadays because whenever a house in Venice becomes available, someone snaps it up and turns it into a hotel or a hostel.
I think I was lucky because I went to Venice in February when it was not overcrowded. Actually, it was almost empty at night, maybe because the temperature was around zero degrees and it felt really humid and cold.
Traveling by train is indeed wonderful in Europe! I have only taken the Munich-Ljubljana train once and it was a beautiful sight as it went through the Alps.