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People did not create and move to suburbs just to spite on eco-oriented people; they moved away from high housing prices and crime. Price out an average apartment in Zürich or NYC sometime. Of course, that happened after they did not have to walk to work/shopping anymore because transportation -- cars, trams, buses -- were available and affordable.
About car sizes, the small cars fit well in areas where parking is at a premium. For a while, the price of having a small and efficient car was it was not as nice to drive for a long distance as a larger one. Compare a 70s Mercedes with a Beetle, or how long it took for VW to make their cars comfortable cruisers. I am not saying modern small cars ride like crap though.
Intercity trains have their place but are expensive. Top Gear had a challenge that showed you could buy an used car and drive it from London to Manchester and back for less than it would cost to take a train. I once took a train across 4 US states to pick my car. The one way train trip cost more than 2x what I paid for fuel in the not very efficient (but paid for years ago) car but took 12h + additional 3h waiting on the train to arrive vs 6h on car (70mph). And, yes, I know one cannot compare AMTRAK with European train companies but that is the datapoint I can offer.
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