Well they actually do this in Seattle and it seems to work out. A fixed route is also not a bad thing (see bus rapid transit) and can encourage private development.
Of course part of the advantage of flexible routes is we assume car infrastructure is in place. While that isn't entirely desirable, it is reality: anyone fighting it directly is ignoring reality. Better to fight it indirectly which means making public transit better and better until people decide on their own to get rid of their car - only when few people use a car regularly can getting rid of roads be realistic.
Build it and they will come doesn't always work.
But if we could get rid of cars, we could make the roads a lot narrower.