The resistance to do anything but prioritize the convenience of a minority of drivers in cities like NYC while we look for "better" solutions (aka a solution that doesn't sacrifice their convenience) has already made a decision on the trade-offs.
If you actually want to provide the best benefit, we should start at the source and be looking at waste reduction. Instead of taking up 10% of the parking, it could be more feasible to take up 2.5% with smaller or less frequent dumpsters. You'd need less landfill space. You would hopefully have cheaper products through less material and less packaging. There's a lot of empty commercial real estate that could be repurposed, maybe for parking or residences with more modern waste management. There's likely other technologies that could be used for waste pickup at large buildings, like containers in the basement rolling out subsurface into the street and bottom loading into a truck via elevator. Or just more frequent pickup.
We could blame everything on cars. I feel that there are plenty of issues that are due to the old infrastructure that never envisioned all these uses or politics though. It seems other cities have figured this out just fine and kept their cars. Seems odd that NYC can't figure it out.
NYC is one of the few places that has density in the US, and largely because it's old density. I feel like you're trying to paint this with a "see density bad" argument that is a lot more nuanced than you're making it.