Isn't this self-evident for any town? If the local geography offers nothing in the way of convenient mobility, natural resources, easy access to trade routes, or anything else worth taking advantage of, there's no point founding a town there. Towns need to build wealth to survive and grow. One distinct drawback of ripping up streetcars and making everyone depend on the car is that you have to level massive portions of your downtown to create parking, and you have to take away tons of public space from people to make room for all the traffic. LA did both of those things and it's why it's unique among U.S. cities of its size for being horrifically sprawly and difficult to navigate.

You also need to bear in mind that car-centric development is incredibly, wildly unprofitable, and is subsidized by taxpayers. Modern low density suburban developments require absolutely enormous quantities of expensive infrastructure - pipes, asphalt, power lines, waste collection, wastewater treatment, fire, police - massive upfront capital expenditures with massive long-term liabilities. The U.S. has collectively spent many hundreds of billions of dollars building and supporting infrastructure for the exclusive use of cars. The local taxpayer base rarely if ever is actually able to offset that cost which is why A) much of the funding is from state/federal grants and B) public debt is increasing without end.