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Maybe they would live in Mountain View and walk, so not creating any new traffic at all? Or live somewhere on the train line and take a train?

If none of those people would drive instead, or even if only a couple of them would, then the massive bus is a negative.

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A bus is about 2 to 3 times as long as a car. Unless you're assuming these buses would only have a single passenger, no, they are not a negative.

And even if all of these people lived in walking distance of where they worked, the places they've now vacated would be occupied with people who may drive, and so forth.

The imaginary world you're supposing does not exist, hence the article we're discussing to begin with.

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