Bus themed solutions would definitely be an improvement over LA's status quo.
However a better idea would be to reduce the need to travel long distances by building denser. LA roads are super wide right now, so the easiest way to raise density would be by putting buildings in the middle of the road, leaving a Really Narrow Street (tm) along either side. Ground floors of new buildings could be commercial, upper floors residential. (Some LA roads are so wide we could put 2 or more blocks of Really Narrow Streets in the space consumed by a single car-oriented surface street).
This would reduce housing prices by bringing a crazy amount of inventory online, and would greatly lower maintenance expenses by severely curtailing the number of square feet of publicly-funded roads, traffic lights, signage etc. If we structured this correctly, the city could make a giant pile of money in both land sales and new real estate taxes. Maybe they could then use the surplus money to build a real train system or just reduce taxes. Lastly, there would obviously also be large environmental benefits such as smog reduction, CO2 emission reductions etc.
Yes, I realize this will never happen, and yes, I realize I'm proposing turning LA into old Paris. Old Paris is great, we should copy it more.
I stole these ideas from [0].
[0] http://newworldeconomics.com/the-eco-metropolis/