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well...
Mass transit has been around a long time, until much of it was dismantled by auto companies decades ago. We are still nowhere close to having the sort of rail connectivity and density that we once had.
And, when you subsidize something (the car), you get more use of it. So I am not sure that you can say much without taking that into account.
Also, that "inflexibilty" of rail (as you call it) is what developers call "certainty" - an important ingredient in any economy and for any major market decision. By giving certainty to developers, you spur investment and smart growth - something bus lines just don't do.
Mmmarvel, I invite you to join the vortex with me. C'mon! It's fun... not at all as bad as you think!!!