It works best alongside redevelopment. America is missing the in between of high density to low density zoning. Areas where building can be built 3-6 stories high and built to be flexible Where they can be mixed commercial uses or residential uses. This can create environments much easier to serve with public transit and walkability. This is basically how many older cities were before they started tearing themselves apart for the car.

You are correct in that public transit doesn't service suburbia well. The car is the ideal solution to its design and thats exactly how it was built. After decades of this pattern and heavily subsidizing this development, the finnancial impacts are starting to catch up. Unfortunately when maintenance and repairs costs are considered, many suburban and strip mall developments cost more to maintain than the generate in taxes.