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A half mile, or 800 meters, is pretty well standard for subway lines.
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That is way too close. Remember underground stations of the size if we are talking about low floor LRT cost north of
$150 million each.
Anyone who says 800 m is ok has never had to actually commute on a line like the Bloor Line in Toronto which has way too many stations. Fully grade separated the speed is effectively 33 kph. It is so slow.
Except in urban cores, or in systems that are not designed to be rapid (like Toronto's planned Eglinton Line) do you see spacing as you say. Purposefully making transit slower while raising the cost a great deal isn't a good recipe for success.