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I've only lived once in a truly urban environment (Minneapolis, while in grad school) and was surprised how little I drove. Yes, buses and bikes had something to do with it, but mostly it was just the layout. In suburbia, walking is a pain and driving is easy and obvious. In an urban environment, the reverse is true.
We need more people to live in walkable areas.
Obviously, commuting is still a big problem to solve. Not everyone can work that close to where they live, even assuming good, cheap housing was available. (Two incomes, job changes, etc. get in the way.) But many can.