You still get to have your car, it just means you can't drive it right through the middle of a dense living area, you'll have to park on the edge and walk/tram/scooter in. Which is the best for everyone.
Except for those in a condition not to easily walk or use any kind of two wheels device.
Then there is the whole issue that local city transportation is pretty lousy, even in Europe.
Sure big cities have it good on the innermost district, live a bit more on the outskirts or in a smaller town and taxi becomes the only option for those not willing to wait between 1-2h for each bus into each direction plus additional commute.
Electric wheelchairs are likely the best option for the first group. Good thing is making an area better for walking makes it better for disabled people as well. A car centric area is extremely hostile for people with disabilities which make it difficult/illegal to drive.
I am all for improvements in such areas, unfortunately even in countries like Germany, there are plenty of local subway stations and local train ones where those requirements are just ignored.
There are cars specially tailored for people with disabilities, and electric wheelchairs are only practicable in sunny weather.
Blind, wheelchair-bound, and elderly people use trains daily everywhere in Tokyo. It only sucks if your city doesn’t value the non-able-bodied (which unfortunately is most of the world).
It also means that, often, it will be slower and/or more inconvenient to use the car.
For example, in my city, for distances inside the urban core, bicycle is usually the fastest mode of transport, public transport is about 1.5x - 2x the bicycle (fine if you are feeling lazy), and car is 1.5x - 3x the bicycle depending on time of day and associated traffic levels.
Sure, if the weather is horrible and I am feeling lazy, I might use my car instead of jumping on the bike, but often after reaching my destination I'll realize that it wasn't really worth taking the car.
I don't really disagree with your overall stance, but those two do often go hand in hand. Perhaps that's why progress is slow on that front.