I don't think it's productive to think of the suburbs as "bad" or "wrong," because that just turns into an angry debate about whose lifestyle is better.
What I think is productive is to recognize that we shouldn't be legislating that there can only be one way to live, and we especially shouldn't be prohibiting that the traditional neighborhood development patterns that have worked for thousands of years. If we actually had a free market, there would be both a fair amount of auto-oriented suburban development, and massively more traditional, walkable neighborhood development.