You'd be correct on both accounts. There was a small general store which supported a few hundred people just fine (along with farms and fishing) and a gold mine which employed most people -- of course a small general store doesn't support 5K individuals and the gold mine is closed.
It's a bedroom community, there are approximately 1000 jobs in total most of which reside within the school district. The purpose of the town as it stands is to raise kids and retire. Commuting to work is a requirement.
Times change, requirements change, and needs change. This isn't the 1880s, but the physical layout of the town is largely the same with the same roads. There was no "planning" for the Model T [cars] as you're attempting to argue -- it was already laid out like it is for the horse, cart, and carriage.
