I also moved to Melbourne recently, and my theory is that the love of trams is inertia from a time where congestion wasn't so bad.
I prefer to walk within the city loop, but both activities would be so much faster and more pleasant without the cars.
There are quite a few Teslas that drive around here with wanky number plates like they're doing the world a favor, which in a city with such usable public transport always makes me cringe.