I broadly agree with you, and frankly what I'm advocating for is to get the government out of zoning and transportation precisely because of the problems you mention, but also because of the negative externalities caused by it.

Today we do not have market choices, because the Federal Highway Administration and every state department of transportation enforces and reinforces centralized design patterns that as we can see today no longer work (and likely never did). It's baked into their raison d'être. Unfortunately, as you also note, items like roads and housing developments live in the public sphere and so we can't and won't completely divorce the government from managing those projects or regulations, but we can examine what works well and increases attributes we want more of and do our best to drive regulation toward those attributes, and in some cases remove regulation to see more of those attributes. In my mind, work that increases walking, biking (or other similar transportation), and rail provide the best mix of low government regulation and effective development patterns which preserve most of the other things we like, such as cars and convenience.

I'm not sure I'm in favor of banning random crap, or maybe you read something into my comment that I didn't intend?