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By the time you solve all the issues with self driving cars you'll always end up with some form of train. So I would suggest skipping the extra steps.
This is the real take. The problem with traffic is that it’s elastic and based on a lack of information. If all vehicles accelerate at the same time and don’t have to slowly increase the distance between the next vehicle due to safety / uncertainty - you get a train.
The train has, at least to a lot of people, its own issues. Mainly not bringing people straight to their home or work. Fix that, without being a longer commute than by car, and without being more expensive, and I'm sure a lot of people will be happy to do it.
At least 60% of the world population live and work in dense urban areas where rail can leave them on walking distance of both work and home. 20% more live in places dense enough for urban buses. So 80% of the world population doesn't need a car.
As for costs, the day drivers are forced to pay the externalities of their driving is the day cars die as a form of regular transport.
Really depends where their job is. I wouldn't be selling my house or moving apartment just because I got a new job, so I could walk there instead of just driving. Just because someone lives in a city, doesn't mean their job is right next door.
For the aditional 20% who can use busses, the problem continues to be travel time. Fx. I could take a train, and a bus to get to work. But it'd take about 1 hour. I'm in country with a comparatively great public transportation system, but I can get to work in a car in 15 minutes instead. Sure, if you get anough people to switch to public transportation, maybe you can run more buslines, because there'd be enough people to fill those lines, but you'd need an astounding amount of lines to avoid people having to switch busses, and wasting time by not going a direct route. I have a car because I'm not going to waste 1,5 hours per day on transportation.
The problem is convenience. If the transportation system isn't at least as convenient as a car, people won't use it willingly. They'd even pay a premium to avoid it. You can force people by banning cars, but good luck with that. We've seen how the french react when a few speedcameras are installed (Spoiler, they burn them).
I want car-free cities, with the exception of transporting goods and work that absolutely requires a car. It'd be utopic! But I just don't believe we can cater enough to everyone's needs in any kind of satisfactory way, without going completely authoritarian and removing people's ability to live and work where they want to.