people in reality have cars and need to park them somewher
I've seen a number of denser developments start burying their parking lots, or stacking them on the roofs. You get denser (and conceivably more walkable) neighborhoods when places are built up this way. But it also drives up the cost of development and is only viable where real estate costs are astronomical. Then you've still got these six-to-eight lane Stroads intersecting the city blocks, with relatively little pedestrian infrastructure for crossing safely.
So if I live in a (atrociously overpriced) condo directly next door to a Whole Foods, you're still stuck hustling across enormous expanses of asphalt in order to make a simple grocery run.
Compare that to a dense urban neighborhood I lived in for a few months in Leeds. Walk downstairs, cross a simple cobbled two lane street, pop into a small grocery / sandwich shop combo, grab lunch plus essentials, then pop home inside 20 minutes. No risk to life or limb and I didn't even need a bike, much less a car.
You can find spots like this all over Italy, France, and Spain as well. Probably common to the Eastern Bloc, too. I've just never been. But the idea that people "need cars" is more predicated on the fact that we've created these oceans of asphalt and concrete in the states which are uncross-able without one.