Even many neighborhoods designed to be 100% walkable and pedestrian-first make affordances for delivery vehicles and similar. Those vehicles can and should be electric, but cycling and transit still aren't at all complete substitutes.
Commutes can also be faster by public transit than by car, especially if start and destination are in the same city.
Delivery vehicles and trucks are probably the most difficult, but they're also major contributors to the noise and stink.
Billions of people seem to have worked out how to do this on bicycles and public transport.
By comparison, my residential building here in Berlin has a restaurant and a café on the ground floor, a business office on the first floor, and the rest is residential, and even the parts of the city with houses rather than apartment blocks do similar things horizontally rather than vertically: house, house, kebabs, five houses, small supermarket, three houses, office.
Similarly in the UK, you’ll have domestic resistances above or next to shops and pubs and offices. Or next to (I’ve never seen them above) industrial buildings: workshops, factories, etc.