Not quite - the split would increase the number of people changing at
Camden Town, and the station can't handle that. Splitting the line thus
involves rebuilding Camden Town.

It is questionable at best... the main problem at Camden Town is
getting in/out of station, and split won't make it worse.

Plus there's a large number of people who would NOT need to change
trains after split (for example if you are going to Goodge St. from
Colindale, but the first train is to Bank - a lot of people would jump
on it and then change at Camden Town; however if all trains from
Edgware will go to Goodge St. - Camden Town won't be involved at all).

Plus frequency of trains will increase and will help with the crowds.

P.S. I think there was some temporary split recently and it actually
worked quite well.