Let's hope it works out, there are many people rallying against this initiative (Dey Turk Er Ckers!!1) I think it will prove to be for the best (of course this is my opinion).
The problem is that the way postwar cities were built in North America has meant that the overwhelming number of people still need a car to get to the pedestrianized areas, so over the years most of them have failed.
The neighborhood in which I live (Reston, VA) was originally supposed to have several walkable "town centers", but all but two of them were built as standard strip malls, and one of the two that was built to original plan was demolished for a strip mall in 1994.
By happy coincidence, I can walk to work. But, grocery shopping is still a car ride away. And even if I could walk, I'd have to cross giant asphalt wastelands filled with distracted drivers.
Meanwhile, UVillage has an extensive set of interior streets with pretend stop signs for pedestrian crossings that drivers often ignore. And the mall owners keep building parking garages, closing off sidewalks for a year of construction in the process.
I have high hopes for the rebuild of Northgate Mall, on Seattle's north end next to a light rail station. The owners of Northgate filed their 129-page development plan with the city and they spend quite a few pages on how pedestrians will access the property, where people can congregate and play and exist without cars, and how the two additional interior streets will have calming and slowing measures to put pedestrians first. If the owners of Northgate Mall's written plans come to fruition as written, I hope UVillage's business will drop so they'll be forced to adapt in the same way.
I think this type of thing would require a ton of compact living area nearby (apartments, etc) where people almost use the area as their "yard". The small town I mentioned is mostly suburbs where everyone has a small slice of backyard.