Around my area, people don't walk for pleasure, mostly, they walk because they're too poor for a car and the public transit system is terrible. Forcing them to climb stairs (assuming they're even physically able; a fair number of pedestrians near here are in wheelchairs) to get out of the way of cars is a non-starter.
(Though I can't imagine people being happy about going up and down stairs, escalators, or elevators every time they want to cross a street.)
The necessity arises from the car-drivers, so you charge them for the pedestrian safety measures, just like you charge them for the creation and maintenance of limited-access highways.
Without crosswalks, there is no pedestrian-crossing phase needed in the traffic signals, so separating the two types of traffic simultaneously makes cars faster and pedestrians safer. The question really is how much drivers would be willing to pay to shave that last minute off their commute.
If you look at projects like Boston's "Big Dig", the answer is that they are willing to spend quite a lot [of other people's money].
1. http://www.spiegel.de/international/spiegel/controlled-chaos...
Elevated walkways would be vastly cheaper, but still infeasible on any current budget. You would end up having to rebuild the lobby of most buildings to be on the second floor, and probably turn the first floor into parking. It feels like one of those utopian ideals from the 50s or 60s that came out before people started thinking about the money.
Seattle was raised in the 1880s.
A portion of Atlanta was raised in the 1920s. They actually did rebuild new lobbies on the upper floors, and a lot of the old storefronts are still intact down below.
but yes, underground infrastructure is expensive (maybe the boring company will help drive equipment costs down), but we're a rich nation and we want nice things. i think we can do it if we want to. plus, it creates working class jobs and that makes the economy go 'round.
The results are... mixed. Some people love the place, but the grade separated cycle paths are not popular. Well worth looking at, if this is an area you're interested in.
Turn the sidewalks into elevated walkways. Or use pedestrian tunnels underneath the road surface. Pedestrian crosswalks are a money-saving measure, ignoring one of the many externalities involved in automobile manufacture. Cars simply should not be driving on pedestrian walkways, and pedestrians should not be walking anywhere that does not have a significant physical barrier between them and the massive objects moving at high speed.