Easily. Going from 700 -> 1000 ft spacing adds 150 feet of walking (x2 for both sides of the trip). That's about 1 minute. Over a mile you'd reduce the number of stops by 2.2. So above 2 miles it's faster even for the lower end of that range of savings.

And that doesn't even consider that a faster bus route means you need fewer buses to run the same number of trips, so you can either run more trips (and save even more time for riders waiting for their bus) or cut down costs for the transit operator.