If we should reject road expansion because it fails to decrease travel times, then we should certainly reject a shift towards public transit, which actively makes them much worse.
"Congestion" is a non-problem. You get no points for "solving congestion" by kicking everyone off the road. It's quite likely that a highly congested road is still delivering better end-to-end travel times and user experience than a realistic bus system.
"Solving congestion" is great for you if you can afford the congestion charge, but it's not clear why a democratic society should let the rich kick the poor off the roads for their personal convenience. Really the only angle under which it's a coherent goal is reducing carbon emissions, but then you don't even need to talk about induced demand - it's sort of obvious that more road capacity means more driving.