Forget small cars, Americans should embrace (and demand more) public transit. Switching everyone to small cars is putting a bandaid on a gaping open wound.
Public transport _can_ be good if you have a society that treats its poor well and highly respects and desires clean and good public transport and is willing to fund it.
During that same time period I used to commute to SF for work 1 week per month and used BART and public transit almost exclusively. Also never had that experience.
In both, I definitely SAW homeless people, some of whom were likely mentally ill, but seeing them and being harassed by them are totally different things. The latter is mainly fiction. By contrast, I’ve been harassed (at gunpoint) by middle-class “sane” drivers in a bout of road rage.