Intercity rail v. local transit in Alberta is a "both/and" type problem where we so easily fall into the classic "either/or" scarcity trap where before we build anything, arbitrarily reducing ambition and applying resource constraints that are only hypothetical.
I've heard this argument many times before about how intercity rail won't be useful due to all these bus transfers and transit issues on both ends, but respectfully, these are always strawman arguments. If local transit was so poor how does both Calgary and Edmonton have 300,000+ daily ridership each? Calgary Transit and Edmonton each have current system ridership about equal to Boston (~4.5M metro). Each city have the system ridership about 75% of Chicago (~8.5M metro). How much more local ridership do we need to prove the system is useful to a lot of people?
Of course there's a million ways to improve and extend the local systems. We could "prioritize" building more local/regional transit in the cities and then hope to connect them one day. But, if we follow that plan, this will result in no intercity rail ever being built.
We need to change the mindset from scarcity to one of more ambition. Calgary and Edmonton could easily be metros of 3M+ in a few decades. We need all of it - local, regional and intercity options. If anything, the lowest hanging fruit in the public transit picture in Alberta is the intercity public transit options as it literally doesn't exist today. Having intercity connections probably is the step-change improvement that would truly transform these reasonably successful local networks into a really efficient regional/provincial system.