What you describe requires the elimination of residential zoning completely to allow for small businesses to mix in with the homes. You can't eliminate cars until you eliminate the need for driving to stores and you can't eliminate that without mixed zoning.
I agree with mixed zoning, but you still need to get supplies to the local stores and trash out of the area. Plus you need places for special construction equipment to get in as there is need.
Of course all of the above is a fraction of traffic that we have today. However don't pretend it doesn't exist.
