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>Making life easier for people who choose to not own cars, has positive impact for those who can't own cars (and not to even begin on reducing the negative externalities).

And people who drive cars. Because less congestion if there are half as many cars on the road.

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Unfortunately, it doesn't always work out that way, because congestion tends to be the limiting factor for demand for car trips thanks to a very low perceived marginal cost. So as soon as congestion reduces somewhat, that extra capacity suddenly makes it more attractive for the marginal driver to take a marginal trip, and traffic increases (but not quite all the way back up to its original level).

Not if more people forego the car entirely. The marginal trip costs are high if you don't have a car. Even if you could rent one cheaply over the weekend, it's more marginal cost than if you have it in your garage.

A lot of European cities with good public transport and narrow medieval roads still have less traffic than American cities with 4 lane roads.

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