The problem with your argument is why would people buy cars if they were so terrible? While the infrastructure was obviously worse than today clearly they afforded tremendous advantages which motivated their adoption!

In the early days that advantage was the ability to rapidly traverse relatively developed areas with more convenience. Over time infrastructure and adoption chased each other, but now the most populated parts of the US are developed to the point that there's little way to ease congestion with more road infrastructure. The only way to grow is to sprawl into new cities.

For a long time in population centers the pattern was new car infra. -> more driving convenience -> more cars -> repeat. In cities that's running into bottlenecks.

Today people primarily buy cars out of necessity, but in areas where most people live congestion and a more sprawling environment has diminished much of the time saving advantage.