Densely populated areas shouldn't have surface-area-inefficient cars as a main mode of transportation at all! Good public transport and the other 2-wheel modes should do just fine, but of course those aren't as profitable.
Good public transport is the key part and I can tell that in most European cities, not the capitals that everyone visits when they say they have been on country XYZ only hanging on the city center without even venturing into the suburbs, that is quite far from where they were supposed to be.
A lot of people look at Europe through the lens of the tourist areas of large cities. As someone who has spent a lot of time in the UK countryside and smaller towns, there is absolutely not a good public transit system even if there might be a few buses during the day.
Heck. I arrived by train from London to a town where I found the busses to the start of my walk were basically non-existent. Fortunately a taxi pulled up as I was trying to find a taxi service by cell as the train station didn't have any staff.
Bus deregulation wrecked public transport for much of the smaller places in the UK.
One of the positive things labour has done is allowed local authorities more control over this, which should help - I can also imagine them being very bad at communicating this if it does.
Of course I'd prefer a bunch more investment too, more train lines and go ahead with many of the previously touted tram schemes.
It’s a great ideal state, I just happen to think it’s several decades away. Most people reading this will never witness it. We’ve already heavily invested in what you say should not exist. Financial inertia is strong to keep things on that path. However if we, US, shrink our vehicles we can double or triple the throughput of current roads.