The cities were there for thousands of years before the cars. In fact part of them were literally destroyed to make room for cars. It is from that point that the upper middle class left the city to live in the suburbs. Before they lived in the center. Now they are too many living in the suburbs, the traffic is hell, and everybody loses. Neighbourhoods where they removed the cars are a big success, where have you seen it happen differently ?
And I don't understand your issue with the jobs. Most jobs are in the cities, which is why people commute there. Why not live in the city then ?