Yes, it's definitely the case that a lot of mass transit advocates are confused about this and talk about induced demand in an unproductive way. New York City'

Yes, it's definitely the case that a lot of mass transit advocates are confused about this and talk about induced demand in an unproductive way. New York City's congestion pricing scheme was approved at the state level, so it's not true that people living outside the city didn't get a say—though people from New Jersey didn't, and can reasonably complain. It's theoretically possible that congestion pricing could be welfare-reducing if peak demand is inelastic enough. If this were happening, then (1) traffic wouldn't fall much unless the price were raised to extremely high levels, and (2) frequent commuters would be ones most harmed by the policy and would be its most fervent opponents. In New York, we see the opposite: traffic has fallen sharply and frequent commuters are the policy's biggest fans (https://pfnyc.org/news/new-poll-ny-voters-say-congestion-pricing-has-led-to-faster-commutes-and-less-traffic/ https://pfnyc.org/news/new-poll-ny-voters-say-congestion-pri...). Similar things have been seen internationally in other cities; people often initially resist having to pay for something they're used to getting for free, but once it's in place, it's durable and popular because people don't want to go back to traffic jams.