2. You either create loops or hubs where people transfer. The hub can be just a regular bus stop where lines meet.
3. Looking up the density of Dallas suburbs I can tell you that buses can work well in far less dense places.
4. The math doesn't add up, if you can get somewhere by car in 20 - 30mins driving then even with 15 minute walk on either side the bus will take you there in less than 'hours'. And walking 15 minutes to the bus stop is not the end of the world. There would also be plenty of people living/working closer to the stop.
From your original comment I got the idea that you think buses need to be these massive heavy vehicles, but that's not really the case either. I've been to places where the public transport was operated by microvans with as low as 12 seats. I don't think they were actually much bigger than american pickups. But I think a regular bus would work alright.