You're not completely incorrect, insofar as European cities (and any worthwhile city) are forced to infringe to some extent on fundamentalist interpretations of property rights for urban planning. But you might as well throw up your arms and complain about building codes and zoning restrictions anywhere else if such things are such "onerous restrictions on individual liberty."
The reason why so many Americans have settled in exurban developments is because we've artificially subsidized those lifestyle with federally-funded freeways, artificially cheap gasoline, and destructive corporate attacks on public transportation systems (especially in the 1950s, check out the GM attack in Los Angeles as an example). Exurbs didn't develop organically, nor are they in any way models of efficiency, cost, or sustainability.