You are quite correct there, Deerfold. My old village is ine xactly the same position. The idea that people in power think this is a success and should be applied to railways, is frightening, and leads me to believe that the majority of people who believe this do not use either bus or rail at all!
It's not just in rural areas though. The PTE's have seen a continual drop in bus usage since de-regulation, whereas in regulated London bus usage has consistently risen over the same time. It's hard not to conclude that the way the buses are organised has had some effect on this, particularly as Londoners generally have more public transport options to begin with.