are going to spend much more money in Europe on clothes, hotel, food and others. It is financially a much more profitable idea to give concession on railway.
Culturally, mid-class American families still have the tradition of giving their college-graduating kids a free European trip on the senior year. Almost all of my students took a free European trip after their graduation.
Euro railway firms have all kinds of discounts for young people(their own citizens) and frequent rail users. Therefore, the concession to American tourists are very small in effect.
In terms of free admission to museums/galleries/libraries, it is usually universal--no discrimination based on nationality, but some difference in age does exist.