Both my kids were born in Berlin (now 6 & 8 years old) and we never owned a car. In some ways transit is even easier with a stroller as you can just roll into the subway/train instead of having the disassemble the stroller and put it into the trunk. Buses require a bit more effort to board with a stroller but newer busses allow the driver to lower them near the curb to make boarding with stroller easier. We’ve done that for the entire time our kids used strollers.

I'd bet good money on your life being overall easier in a less dense city and two cars. But yes, you can do it and people have raised kids without cars for millenia.

Life in a less dense city itself would be different (fewer career opportunities - despite remote work, less cultural opportunities, etc). Also kids become more independent earlier so we won't have to drive them everywhere as teens etc.