Rush hour is like pouring a 5gal bucket into a sink. You can't reasonably handle that all at once will have some water in it until it all makes its way through the pipe. But you have to be insane to use that as an argument against making the pipe bigger. Increasing the max capacity of the pipe (so more lanes, in the case of highways) means that it can have normal flow before it starts backing up. The "induces" demand because at the margins some people who were voluntarily changing their usage times to avoid the peak hours will commute at peak hours.
I am intentionally trying to use generic language here because this isn't a unique phenomenon to highways.