"I think what is much more likely is that the government will simply [...] let the public transit die."
That kind of happened in other parts of the world (in the former socialist block). You know what happened afterwards? The significant demand for mass transportation encouraged private parties to step in. They weren't as good or as convenient compared to the former government-subsidized public one, but they solved the problem for a while.
> When people stop taking public transportation because it's fundamentally broken (ps - it's awful in SF) then it will force government organizations to re-think their planning.
I think what is much more likely is that the government will simply raise taxes to cover the shortfall and let the public transit die.