> That seems to suggest we'll have more crowded roads with reduced capacity (due to the added cycleways);
The goal of course is to have people actually use the cycleways, which should increase capacity: you can fit multiple cyclists in the space used by a single car driver.
Of course not everyone who is driving will immediately switch to bikes, that would be unexpected. But many do use cars when they could have used bikes, but because the infrastructure is poor, they chose cars. The ones that come from outside the city can now park within range of their work and bike the rest. Paris is notable for it's shitty traffic (and drivers...), so many would want to switch to bikes, just to avoid going insane.
The goal of course is to have people actually use the cycleways, which should increase capacity: you can fit multiple cyclists in the space used by a single car driver.