The new express busses are faster, but not by enough. Getting crosstown is still a hassle. I walk from 2nd Ave to 7th Ave every day for work, and find that it's generally nearly as fast to make it a brisk walk -- healthier and cheaper, too.
That said, taxis aren't the problem. At least they're always on the move and always picking up passengers. The parking lanes on the major streets should absolutely be turned into dedicated bus lanes -- but it's not taxis that are using that parking.