People in prisons take even less space. Freedom is also is in the equation. A car gives me more choices than a bicycle. If there are too much cars (can happen), perhaps this city is becoming too big. Why live in crowded spaces, if there are many alternatives available?

i completely agree.

in the future we have less space per person as there are more people, and politically no-one really wants to talk about population growth or demographics (unless they want to encourage people to breed faster).

the car is obviously superior to the bicycle for the reasons you state, it is also obviously inferior in terms of environmental damage.