The way I see it, induced demand is just a way of saying that all modes trend towards equilibrium. If you invest more in trains, they become more attractive, and people gravitate towards them. The same is true of cars, busses, etc... How each mode of transport scales influences whether you want to induce demand for it.

AFAICT trains scale pretty well in terms of space and environmental impact, and point-to-point latency decreases as more trains are run (and transfer times decrease), so it's pretty nice to induce demand for it.