The problem here is that the article (and StrongTowns, and most urbanists) are simply wrong. Demand simply does not work that way. They have a fundamentally flawed understanding of Induced Demand, and are incorrectly applying it to gain incorrect results.
By StrongTowns logic, we should never build more hospitals (it would just induce demand for more sickness), and we should never run new sewer lines (it would just encourage people to poop more often), and we should never run fiber lines (because it would just encourage people to "waste" internet bandwidth), and so on