There is nothing that we can do about this but that is okay. The economics are going to dictate the balance of transport and if it creates new sprawl, oh well. While it creates problems, the benefits of AVs make it worthwhile. The greatest of these benefits are the increased access to transportation for lower income people.
The reality is that the induced demand won't be all that bad because the demand will be met through ride sharing and traffic flow optimization and reduced vehicle size.
One of the great things about AVs are that they will reduce the need for some expensive projects. For example, people want to bring back the Northlander but when autonomous vehicles are available, somebody will be able to book an autonomous shuttle from North Bay to Toronto. The shuttle will get them there comfortably without them needing to drive (great for senior citizens), will be quicker, door to door and run without the need for any taxpayer subsidy. On top of all that, the ride would likely also be cheaper than a train ticket because of low fixed capital costs.
Autonomous vehicles are going to change everything and it is something that we should look forward to. It is something that I used to struggle with since I like trains, but I learned to embrace it and so should other urbanists.