If we're serious about modernizing and reducing our carbon footprint, we should provide reliable, safe, comfortable transportation that people want to take. Not relegate it as a public service for the needy. (though the both can work together)
I think the 'solution' is to replace buses with smaller and more efficient urban mobility solutions; buses are not that efficient (as they spend most of their time driving around almost empty), so this is the lowest-hanging fruit anyway. If I knew how to create these solutions, I would be working on them right now, but I think some combination(s) of car-sharing, high efficiency vehicles, self-driving technologies, and electric bicycles will eventually replace buses.
However, I've taken some really, really bad buses (SF), some middle-of-the-road buses (Seattle), and some rather good buses (Vancouver).
If you want to improve bus efficiency, the lowest-hanging fruit is switching the less-used lines to 24-person shuttle-buses. Vancouver uses that model heavily.
The next lowest-hanging fruit would be actually getting people to use the bus. If the reason they don't use the bus is 'it doesn't take me where I need to go', you can fix that. If the reason they don't use the bus is 'only crazies and poor people take the bus', you can fix that too. Transit systems that are used by everyone, as opposed to just 'undesirables' tend to run a lot better.
Also, keep in mind that most cars on the road are $20-50,000 vehicles that drive 75% empty, and spend 95% of their lives sitting in parking lots. That's a damn low bar for 'efficiency' that even a mostly-empty bus can match. Likewise, taxis are vehicles that spend ~30% of their time driving empty, and only transporting 1 person the vast majority of the remaining time. (While costing ~$30/hour to operate.)
Rail I think is obviously preferred long term, but setting up a fleet of electric buses could be done in a matter of months, vs a simple limited rail that takes many years.
Don't get me wrong; I'd love for everyone to be able to do everything, but trying to make everything work for everyone all the time can get Procrustean.