Right on my friend, I do agree with a lot of your points - specifically headways and managing transfers. But that's why I think by reducing lanes, changing bus routes so that they don't get backed up by car traffic, and the real key you mentioned of reducing headways it would make it much more feasible. There are plenty of times I give up and take my car because I don't have to spend 2x-3x as much time taking the bus when I could do it in my car.

As for the parking garages, this is one of the few times I'd advocate jacking up prices - granted as long as it's easy to get into the city, to dissuade people from coming in. Hell the city could charge a flat tax on people parking which goes back into reinvestment.