The Car was supposed to kill The Landlord by increasing the supply of adequate housing and driving residential land prices near zero. It didn't work, for the reasons you described. First, driving itself is very expensive, especially if you include parking the damn thing. Second, the few suburbs that are desirable at all (near major cities, good public schools) are often similar in price to city housing-- and NIMBY laws keep housing scarce in them. Third, cars scale poorly (congestion). So none of that actually happened, and we're stuck with this ugly, polluting infrastructure.