Yes, the main benefit of trains and proper buses is that you wont get stuck in traffic. So in the worst case scenario you'll see troughput increases as a function of ridership (more occupancy, more trains) while trying to battle overcrowding. By adding more trains and buses. Trains have another benefit to the population that they can travel at higher speed, so the induced demand with trains can get even higher because of the large distance you can travel if you travel at 200+ kmph.

Induced demand isn't actually a bad thing unless your transportation gets less efficient the more people use them. Which is definitely the case with cars. Just look at the amount of parking spaces needed to cope with peak hours. This can all be avoided if trains and buses are a viable and comfortable option for people.

Just think about the average car ridership only having 1.2 passengers. While a bus that takes up three parking spaces can have 50-100 people. Or a train that could hold up to 1500 passengers.