One thing that I find a bit of an issue in the UK is that the choice is pretty much always (give or take the odd Busway) between an extraordinarily expensive rail reinstatement and a run of the mill, poor quality bus service that isn't in any way integrated with the railway fares and timetables system. There isn't seemingly scope to put half the subsidy into a really, really good fully-integrated electric bus operation for instance.
It's quite heartening that Wales is willing to look at a middle ground there and is pursuing true integration on a Swiss like model.
Not to say that buses are always the answer (they aren't) but they can be.
I actually agree with you. This is where it really needs to be a case by case basis. Studying the old rail maps and comparing it to the bus service today, buses win out in a number of places, precisely because they connect with the nearest big town or city. Railways often connect in some really random places.
When I learned that the Bury Line in Manchester was once a railway, I had a long think about it and concluded the tram beats the train hands down in terms of frequency and connectivity. Even on Sundays, the tram runs every 15 minutes. I doubt the train was ever that frequent and seems like the journey time to Victoria wouldn't be that different.
Another thread on here very recently was saying similarly about the Luton-Dunstable Busway.
I think what has to change to get what you are saying to happen is to stop seeing buses and trains as being in competition with each other. Same with trams. I see buses as being feeders to the railway in many cases and think the continent gets this while it's not quite caught on here yet.
A really good example of integrated public transport I experience was with the Hovercraft from Southsea to Ryde, Isle of Wight. Train from either Waterloo or Victoria to Portsmouth and Southsea or Portsmouth Harbour. In the station at the Portsmouth end, information about the connecting bus, less than 10 minute wait at a bus stop across the road, short ride to the Hovercraft terminal, after check in, less than 10 minute until we boarded the Hovercraft and left Portsmouth. The train, connecting bus and Hovercraft all on one ticket! And very smooth transition between all 3. Then on the Isle of Wight side, the railway and bus station were literally next door to the Hovercraft terminal. How it should be.
The reality between most bus and train operations seems to be unclear ticketing and deliberately putting bus stops and rail stations apart and making sure they don't time with each other at all. Big part of my own complaints really. If the Hovercraft was ran like most public transport, it would either be walk a mile or catch an inconveniently timed and late running bus that only takes you 1/2 or 2/3 of the way and miss the train by 5 minutes! Meaning 25 minutes to the next one.
I agree what is happening in Wales is very positive, I hope it is successful.