Consider that there is still housing growth, but its in South San Jose, Morgan Hill, and Gilroy. Those people all have to drive past Los Gatos, Cambell, Cupertino, San Jose, and Sunnyvale to get to Mountain View. All your doing is increasing the amount of Miles people have to drive, and that in term increases the amount of time they spend in their cars, and clogs the roads. If you built houses in Mountain View or Palo Alto, none of those people would be on the roads, and if they were it wouldn't be for nearly as long. You don't have to take my word for it take a look at average commute times in the bay area, those increases aren't due to a 2x increase in Mountain View, its due to a 2x increase far outside with people driving in.
Public transportation is great, but the solution is to build houses near where people work, that means San Francisco and Mountain View.
There is a fixed amount of people at any point in time in a metropolitan area. Building at the center will not make new people appear. It removes people from the commuting crowd.
What causes people to migrate to the bay is the office creation, not the housing creation.
What happens is they congest traffic far less than they do now, driving from farther-flung places.
If you focus on dense developments near them, that goes a long way.