Why not ban individually owned and operated cars, and create a focus pedestrian infrastructure and trains then? This technology already exists, it’s healthier, and cheaper!
The technology exists to have only trains get close enough to everywhere that you can only use train and feet? Honest question, can you get by with only trains even in Japan?
I think the hybrid approach here might work well. Allow self-driving cars, but limit their speed to one in which they are very clearly safe, maybe something like 10 to 20 mph currently. This would cause most people most of the time to use mass transit, and if the last mile(or first, getting to the train station) of their trip required it they could opt for it.
Even for people who have a perfect, unblemished safety record at driving? Which, btw, is the majority of drivers on the road?
Basically, you're saying you're fine with punishing the responsible people who take driving seriously and do it safely, because of the mistakes of a few irresponsible people who don't. That's backasswards. You should be focusing on the irresponsible people and leave the responsible ones alone.