Firstly, you assert that everyone wants their own big car. This is not true. I don't want one, and I'm not alone in that amongst people living in cities with good public transport.
I choose my mode of travel (including cars) as a function of the time it's going to take to get there, and how much stuff I'm lugging. If I am carrying a lot or travelling out of peak hour, I take a car. If I'm under time pressure, I'll probably take the metro.
In Paris we have Autolib, which is a wonderful car service where you can reserve a car at one station and drop it off at another. There are over a thousand if these stations in the city, so there's normally one near you and your destination. But the brilliance of this is that I can go to work using public transport (because peak hour), gi to the gym after work and then drive home. Or catch public transport to a restaurant in a Saturday evening, and drive home, or whatever. Self driving cars will make this type of system even better because I can use one without having a station near me, I just call a car.
At the moment city centres get clogged by cars because public transport in the suburbs is horrible. But if you can get a car to a transport hub and then commute into the centre, I think a lot of people would prefer that to being stuck in heavy traffic for hours. Maybe not you, but many people.