I would say that's a pretty clear example of induced demand and the problems arising from it. You build the motorway, people build low density suburbs outside the city to drive and take the motorway to commute into the centre, that delivers hundreds of thousands of cars into the centre which crashes the road-space efficiency of the central area, which damages not just the people driving into the centre, but also the people who live close in, who are using much more efficient and scalable forms of transport. If the motorway was never built, people would live in apartments instead, they'd use buses or trains, and walk, and you could have more people working and living in the city while maintaining a functional transport system, and higher utility as a result.

It's not just a question of the motorway filling up, and maxing out an increase in utility, the motorway filling up means that more efficient uses of the roads in the centre are prevented. There is benefit balanced against detriment, and it's perfectly possible (depending on the exact circumstances) that the detriment will be higher than the benefit.