Bill, I took another look at your diagram, now I think I understand the confusion. The relays you describe as "latching" in post #33, first sentence, are not really latching relays. The relays are described in the lower left corner of your diagram as '"regular" (non latching)'. This is a correct description of your relays. Relay #1 in your diagram is wired to latch itself by switching power through the contact marked A and back to the coil of relay 1. When relay 1 is energized by a car crossing dead zone 1, contact A closes and keeps power on the coil of relay 1, thus holding it energized. Now you need to turn off the power switching through contact A so relay 1 will de-energize so a return run by the car can be made. This is done by momentarily energizing relay 2 when the car crosses dead zone 2. The power holding relay 1 energized via contact A is turned off when relay 2 contact A is momentarily opened, causing relay 1 to de-energize. The cycle repeats when dead zone 1 is crossed again by the car. So while your relay 1 is wired to latch, it is not a true latching relay.
Relay 2 in your diagram never latches. There is no return to the coil of relay 2 with power switched through a relay 2 contact. It is simply turned on when a car crosses dead zone 2 and then de-energizes when the car exits dead zone 2.
The relay I have in my diagram is latching because it will hold state even after power is removed (perfect for a momentary contact like a car passing a dead zone) and without the need to switch power through one of it's own contacts and back to it's coil as you do with your relay 1. This "holding of state" without constant power to the coil is why it is so perfect for this application.