I'd actually read it more as asserting the populace has been been so influenced by this media hysteria that
even though all this stuff got built, nobody uses it because they've become fundamentally unwilling to let their children walk--and perhaps not very willing to do so themselves.
GP mentioned the safety-related improvements to demonstrate exactly how irrational being scared in their particular community was, and perhaps to lament the wasted effort and money a bit. The before/after was to illustrate the populace was so affected by whatever's happening they actually regressed from previously being very willing to walk in worse conditions.
At least I did until the response you got that didn't say exactly the same. But I still suspect that was the gist, in the original context, and it just got a bit lost in rebuttal.