America is a vast land compared to European countries. Public transportation can only go so far. Some American suburbs stretch more than 80 miles out of major urban centers.
Some improvement can come from just improved planning in the cities we already have. Relaxed zoning for density, exclusive corridors for mass transit, etc.
Definitely. Many suburbs need to return to farmland, we have paved over most of our prime farmland for shitty, rent seeking suburbs.
Dense cities are cheaper to live in, cost less to maintain for everyone involved, and give people back time that is currently stolen from them during the average commute. You also end up with better infrastructure, lower taxes, and usually a healthier and happier population in dense cities.
Suburban and exurban slum development with 1 to 3 stories and a 1 to 2 hour commute is destined to die, its just a matter of how and when. Detroit is one failure mode, while Livingston, TX is another (tax base could never support the infrastructure built), though the latter case is very common.
It's not as easy as you make it sound. Americans still want cars.