>"You can't make it stop at every block in order to make it take less walking to get to the bus stop"
You absolutely can, that's how the main bus lines in Copenhagen operate. Some of the stops are only a couple hundred meters apart, and during most of the day the schedule isn't fixed, it's just signed as 5-8 minutes between buses.
The main A and C bus lines criss-cross the city on bigger streets, usually parallel to each other for a lot of stretches, and occasionally on the exact same streets for short stretches. In addition to this, there are a number of lines that service smaller streets on longer intervals, with the stops a little further apart.
Of course we also have the S-trains and Metro, which step up in distance and grid size, compared to the A and C bus lines.
It works. I rarely have to walk more than a couple of minutes from a bus/train stop to get anywhere I'm going in the Copenhagen area.
And this is with stops basically every other block, buses every 5 minutes in rush hour on the main lines, occasionally parallel lines (where it makes sense) and no artificial limits on the service area.