It would be a disaster without that because it would mean that a ton of people, mostly lower-income people, would essentially no longer be able to have cars at all. They'd still need to get around, thus the public transit.
It has nothing to with urbanism or social engineering, it's just about the need for transportation.
> We have a perfectly acceptable drop in replacement for gas cars in the form of EVs.
No, we don't. Not yet. There are still serious problems around charging that remain showstopper issues for many, mostly lower-income, people.