I agree, and part of your message is one of my strong objections. Public transit shouldn't be measured in terms of income-cost for profitability, most commercial ventures come with externalities of some sort and public transit provides a strongly net positive externality effect, it helps to subsidize business costs (cheaper transit can be seen as a subsidy to wages), retail prices (again, paying less gas/time/whatever to purchase a good makes it cheaper and reduces amazon's advantage) and psychology (IMO wanderlust is a real human need, being stuck in pattern for too long lowers productivity)

It's a public service and one that society should be happy to invest in. Governments that balance the books on public transit with accountants alone are acting against the societal good.

You're not incorrect, and I think it's always important to look higher and strive for that. However, it's also such an unhealthy and distasteful attitude to embrace. Now, I actually do say the same about the transit in the city I'm currently living in (Winnipeg, MB), but you have to consider the test case for what makes transit "suck". Let's use basic reliability as a measure for this. Can I expect a bus to be on time and get me to work? In Vancouver yes, in Winnipeg no. Can I expect constant time travel to the downtown core from a suburb? In Vancouver yes, in Winnipeg the bus might not show up. Is there better? Yes. In Zurich for example everything was impossibly on time every time, but the country's reputation is literally watches and money.

Population density does play a huge part, which forces inadequate access to skytrains and so on, but you can still catch a bus, then use the same fare to get on the seabus, then the skytrain, then more buses, and maybe bring your bike so you can get that last mile in.

Yup, or just go to an east coast city (though apparently NYC is sort of terrible right now). I'm originally from Boston and while the city isn't perfect it has a solid offering in terms of moving through the metropolitan area efficiently, whether you reside directly on a T line or not.

Cities built before cars were as widespread as they are now had to put a lot more effort into making themselves livable and providing sane ways to move about the city locally (for daily needs) and regionally (for occasional needs)

I have, and would like to move there if I can manage it. Valid criticism to be sure, but I think it's a bit misguided to levy a statement like "Vancouver transit sucks". Because it doesn't. At the very least it's pretty good. No it's not Zurich or Schenzen, but it's also not Winnipeg, Manitoba.