If we vote no, we have a chance to keep working on it. They'll have to try again in four years. The demographic shift toward reurbanization will continue. Seattle's political power will continue to grow. The ST2 bonds which are limiting us so heavily will continue to expire. We might actually be able to get a better deal if we wait - and we certainly won't get a worse one.
Your point about bus bunching stands, though, if only as an example of how polarized the use of curb space is in this city. "BAT lanes" that aren't well enforced (though I have seen a lot more towing of parked cars out of them as of late) and a dearth of bus-only lanes in favor of preserving on-street parking are just two of my complaints. But service, at least in town, has gotten better in my experience. Hopefully the additional station openings in 2021-2023 will free up even more service hours to fill in gaps and extend the span of service (dare I dream for 24-hour bus[0] service?).
0 - Sound Transit has already said that 24-hour train service is very unlikely until the second train tunnel is online.
That said, ST3 is better than the alternative.