Majority of those are largely solved with good city planning and other regulations around cars, including a healthy amount of drivers ed as well as actually taking away people's license for repeated or severe offenses (note I said or, not and - either one should be enough). I drive a car, so does pretty much everyone else on my street, and yet children do play on the street, much like we did 25 years ago when I was a kid here (there are fewer kids, but that's a different issue entirely, we've had low birth rates since the 90s or 00s). Keys: Narrow street, very few American style pickup trucks (There's an Amarok someone on the street uses as a work car and that's literally it). The speed limit is technically 50 km/h because there's no specific speed limit set on this street and it's not marked as a "living street", yet you almost never see anyone go that fast. We don't even have a speed bump because it's just not been necessary. Both entries into the street have you come in at low speed.
Both here in my small town and in the country in general, it's fairly common to walk or bike to school. Usually the main thoroughfare of any suburb or town has a wide sidewalk on one or both sides, and side streets tend to be narrower and potentially limited to 20 or 30 km/h and since there's often no sidewalk on those, the DEFAULT assumption is that there will be pedestrians and cyclists you share the road with.
Air quality will be a mostly solved issue once EVs are as cheap to buy as used diesel cars too, they're certainly cheaper to run already if not accounting for purchase cost. Petrol doesn't pollute nearly as badly locally as diesel does, it's worse for global warming though (CO2 tends to be higher).
As for play at night, that's just illegal here, kids have a curfew starting at 11 PM (or midnight in the summer), after which they can only be outside with their parents or guardians. Like... let's be honest, do you want your kids out without an adult after that time? Even if there's no cars, guess what else a walkable city is conducive to - alcoholics wandering around. And yes, if you've grown up with them, you know to ignore them, but maybe one out of a hundred is still dangerous occasionally when in a bad mood.

