Self-driving municipal busses would be fantastic.
If all of those people switch to cars, you end up with it taking an hour to travel 1 mile by car.
It's almost as if they have busses for a reason.
But anyway, your statement is actually not true anywhere in the US except NYC. Even in Chicago, removing ALL the local transit and switching to 6-seater minivans will eliminate all the traffic issues.
If you remove the jobs and housing, traffic does get a lot better. But it's not much of a city without jobs and housing.
Large stadium arenas are a special case, but they don't create sustained traffic, and their usage periods typically do not overlap with the regular rush hour.