The argument here has a lot of merit-cities where every single person is expected to own a car and drive it all the time don't work well, even without our looking at the ecological implications.
Incidentally, it seems to me that the whole "car as social status marker/freedom symbol" issue is probably overstated-the kind of thing mattering more to the rich (whose views are disproportionately represented) than those straining to afford modest cars, who get less such satisfaction. I got in my two cents about that here on Predict just a couple of days ago: