If you’re sensitive to commute time, you’ll want to live in the same ‘city’ as you work, for instance, or at least nearby. But it will cost you a lot of money, and you’ll get a closet.
If you want the ‘big house with a lawn’ experience, you’ll pick a distant ‘city’ or even another ‘state’ (in this case, a city in a nearby suburb).
Typical case, it’s an hour+ end to end from one side to the other even on the fastest transit for Tokyo or London, and they have really good transit systems.
Singapore similar when it’s busy (which is actually quite a feat considering how small of an island it is).
It’s been awhile since I’ve been in Manhattan, but I remember it being roughly 1-2 hrs too.
Mega cities like Mumbai? Double that.
As you say, the solution of course is to not go that far on a daily basis. You can make your life convenient, as long as you are living alone.
The problem with self driving cars is that they can only optimize road bandwidth a bit more than they are now (and even then, only if you outlaw human drivers), they aren’t a magical shortcut to increasing bandwidth beyond indicated demand (like mass transit can).