Whenever I’m in Sydney I prefer to travel using the railway system, CityRail, rather than buses or taxis. I might have a different opinion, though, if I relied on the system to commute each and every day.
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If you’re coming from the outer suburbs and you’re near a train line, the trains really are the best way to get into the city. The trip from my place to the city was about half an hour and you’re there. By car it’d take well over an hour and then there’s the hassle of finding (and paying for) parking. As much as people bitch about the system, in most cases (and in my years of experience) it wasn’t too bad for peak hour commuting. Nothing like Japan’s trains of course, but hey 🙂