Are there realistic situations where a cheaper and more convenient form of driven transport leads to fewer VMT?
It makes a lot of sense to add better unit.
No one would use it.
Now add 10 more trains so trains stop every 5 minutes.
Many many people use it.
A lot more people will start using a service if it's frequent enough that they don't need to plan around it.
In all of these cases, a good answer is to have more convenient public transport - and that usually means adding more units.
Other problems have other solutions, like adding tolls to congested areas, subsidizing public transportation so the fares are low enough for people to afford or choose it over driving, or increasing private vehicle ownership costs.