That’s literally what induced demand means. It doesn’t mean that when you put another lane on the freeway, more cars magically poof into existence and traffic gets worse. Induced demand means that when people hear that there is a new lane on the freeway, they tend to take the freeway over surface streets because they think it’s going to be faster.
This has a benefit for cyclists because it gets road users off of the surface streets that they share and onto freeways that are car only, meaning there’s now less cars for buses, streetcars, cyclists, and pedestrians to contend with on the streets, and they’re contained on car-only freeways.
I’ve actually seen this implemented pretty well before. There’s a huge street that’s essentially a highway, with few lights and a higher top speed that drivers flock to because it’s the fastest road. That funnels them off of smaller streets leaving those smaller streets for pedestrians and cyclists.
It’s okay to think outside of the box, anon.