Perhaps people will decide that the flexibility and comfort of private vehicles, especially in a context like the one described where they create much less noise and pollution, is worth them taking up a little more space.
It's easy to fall into the trap of deciding that buses/bicycles are somehow morally better (or worse) than private cars. This is not so -- we should dispassionately judge the tradeoffs instead, ideally with an eye towards allowing individual people to make the choices that fit their needs best.