Riding the buses here, there is a lot of town to town travel, more than you think. The problem is an inconsistent messy web of services, all with different frequencies and standards. Herts BSIP tried to coordinate things a bit more but buses stuck in mixed traffic can only go so far. Buses only running hourly in many cases are another limit to their usefulness.
I've used the 907 since it launched and these days it really surprises me how Hertford and Ware seemingly pack out the bus with everyone wanting to go to Stevenage, which was awkward before. Similarly a lot of people going between Hatfield and St Albans, St Albans to Hemel Hempstead and St Albans to Watford. Interestingly Uno claims their ridership between Potters Bar and Hatfield basically doubled after taking over the 242 and 243 and co-ordinating their timetables to run every half hour over this section. Seen people online say the 724 is regularly packed over night when its least expected.
The trains may be quick but in a number of towns here, stations are in useless isolated locations, away from town centres, employment areas, hospitals etc. The university also miles from Hatfield station. Also I don't think it is accurate people only want to go north to south, that's basically all the infrastructure really allows for if you don't drive, hence all the congestion. With your logic, even Superloop imperfectly around London wouldn't have been tried and yet there's clear demand for point to point connections between outer town centres, whether it's infill development or fields between them.
And London would benefit from improved public transport and infrastructure to the north of it, less pressure on its roads from everyone who feels they have to drive and less pressure on the tube and big London terminuses. The basic idea is to make it easier to access more opportunities. You don't judge the usefulness of a bridge by how many people are willing to swim across.
And even as satellite towns they still need high quality public transport and with the lack of a regional transport authority encompassing both London and the Home Counties, it unfortunately still falls on county level. I get your point but the approach needs to be different, Herts has a highly urbanised population now, it part thanks to the green belt and new towns policies making that population more spread out and further away from London. It's only getting more built up and at the same time, North London is densifying, government at every level looking at the bigger picture and joining the dots is essential.
An hourly bus service is all but useless for most people as it's unlikely to match up with when they want to leave or get somewhere.
One thing which could work is to create a number of hourly bus service (which runs in both directions adding each route) which runs something like:
Route 10: Town A, Village A, Village B, Town B
Route 20: Town B, Village B, Village C, Town C
Route 30, Town C, Village C, Village A, Town A
In doing so the frequency between villages isn't great at 1bph, however between each village and their nearest town they have 2bph.
It also gives the potential option for going the long way around (Village A to C via Village B, over going directly between Village A and C) as whilst the journey time may be longer it still might be quicker than waiting for the next direct bus.
To get travel between the villages to almost 2bph there could be an hourly bus service which runs in one direction creating a loop between the three villages (probably with a 4 minute pause within each village as padding to give recovery time). The next upgrade would be to run that in both directions to shorten the time to get from (say) Village B to Village A (assuming the loop is A, B, C, A).
If any route gets busy enough to become 2bph there's then 3bph on the village to nearest town links if both buses through a village got to being 2bph the village to nearest town becomes 4bph and so becomes transformative in terms of bus use.
Although, the loop between the villages could be at risk of being cut if there's 2bph on all three of the other routes, as the need for it reduces.
Obviously that would need 3 fairly large villages laid out in such a way that it could work (i.e. not just in a straight line along a road with no viable alternative routes).
The other thing which would aid bus travel is to run buses through a town (where they currently go to a bus station and stop), as then for those on the outer edges of the town it becomes much easier to get to the part of the town which is the other side of the centre served by the same bus.
This becomes super useful for out of town centres of employment and hospitals as it increases the number of people with a direct bus to them.