This is the same way as the light in your house (the isolated track being the light bulb) and uses two DPDT toggle switches as you want to switch both rails not just one as in the house wiring.
I don't think having the switches themselves light up is doable for most switches, you'd need a switch with separate light inputs (most just light up from the power they are switching) in which case you'd simply extend the bridge/LED (only one shown, you'd want one for each side of the module) to the switch instead of the fascia.
The bridge rectifier is of course required for when DCC is powering the tracks.
While this way is simple all that wiring might be tedious. I wonder of Alan could come up with a simple but way cool push on/push off system that works from both sides of the module?
- Tim