What a crock. This is an extremely biased presentation meant to prime the reader for the awful right wing plan he's going to unveil in his next blog post. No doubt privatizing the infrastructure to "relieve" the taxpayer of the burden. Never mind that somehow it is still going to have to be paid for and if it's privatized we will have to pay more so the new owner can make a profit. The reality is cities are insolvent…
I don't read Strong Towns much, but I don't think you've read much of the stuff they put out. The blog definitely isn't in favor of mass privatization — that wouldn't help much, since the infrastructure is still crazy expensive and not worth paying for. The model of development that gets us out of this mess probably is one of much greater density + changes in accounting practices.
Really Narrow Streets
Unfortunately most North American local government has a savagely visceral hatred of that idea.
Full disclosure I stole this idea from [0].
[0] http://www.newworldeconomics.com/archives/2006/032606.htm