1) Living in dense cities is not for everybody, but given that large and (at least pre-covid) growing majority of people in the developed world do choose to live in cities, I think it's safe to say that there is a very sizable demand. For an example of the benefits of density, see [0].
2) I'm not sure exactly what you mean by a "means of escape", but getting rid of cars of course necessitates replacing them with other modalities. If you want to go skiing does it matter to you whether you take a train or a car? Or, for further afield trips, take a train to a car rental far from the city center? (If you mean escape in a literal sense, like "evacuate in the face of a disaster", then cars are clearly not fit for purpose -- if roads can barely handle rush hour traffic, mass evacuation is a recipe for gridlock)
[0] https://www.bloomberg.com/news/articles/2019-11-01/how-densi...