This a very US-specific observation. While yes mid-century planners did some very stupid things and were kind of control freaks, the privately-held land baseline that preceded them is
not at all universal. See the other posts' great examples.
Also, we now have the automobile to content with. The car is a like a gene drive, a self-perpetuating technology like we had never seen before, radically upending status-quo-ante system dynamics. (The reasons being a) Cars push everyone else off the streets, b) car-driven development spreads everything way to far apart for anything else to be practical.)
The market alone can't defeat cars any more than evolution can defeat gene drives. Only social failure / extension (and heaven forbid horizontal gene transfer!) can rain them in "endogenously".