Let me put it a different way for you:
All of this conditional on self-driving cars really being actually solved, such that an autonomous car is, say, better than the 75% driver on the road.
I expect the overwhelming majority of long-haul (say, >200 miles) passenger transport to happen via planes and trains, just like today.
I do not expect that commute times will be substantially shorter -- indeed, I wouldn't be surprised if they were mildly longer.
I DO expect that people will be able to use their commute time productively (they could work during it and either increase their productivity or decrease their hours) and/or be able to spend less money on transit, because they're using shared vehicles.
I DO expect that short-haul public transportation would suffer a significant decline in ridership, as it would be outcompeted by driverless carss.
I do NOT expect that short-haul public transportation would be entirely killed, it will still have some advantages, especially in very dense areas.
I am agnostic about how wise the investment in autonomous vehicles will end up being -- it depends on how much additional investment is needed to get to this (hypothetical) mode of full self-driving, and to what extent many actors are able to reach full-self-driving at the same time and drive commoditization of self-driving cars. But who cares? It's not my money, this has overwhelmingly been paid for by private actors.
Do you disagree with any of that?