> This lifestyle can't work for people outside of cities
I'm not sure. You have to look to other places in the world to see examples of lower density living, though. I live in rural Japan in a small town. Officially I think it is officially 25K people, but that's only because it is more efficient for a single city hall to service a larger area. In reality, I think that it is closer to 5-10K in the town itself and then a spattering of people around the outskirts.
The main street of the town is 6 blocks long, if I remember correctly. I live 2 km away from the "hustle and bustle" of the town ;-) I live in a 3 story walk up apartment building surrounded on 3 sides by rice fields. Here and there, there are similar small apartment buildings, single family homes and small farms. In the walkable area, there are 3 grocery stores, a variety of restaurants, some clothing stores, some hardware stores, one electronics store, many bars (Japan is a drinking society), etc. There are many factories in the area (including TDK, Suzuki, and a few other big ones). There are dentists, doctors, etc, etc, etc.
I have to walk to the "down town" to catch the bus to the nearest big city, which I probably do once a month or so. However, that's it. Near the main street, it is mostly houses and shops, but by the time you get out my way (which is only a 20 minute walk) more than half of the land is farmland. The main street is right by the beach, too, so it only spreads in one direction. That should give you an idea of how small it is.
There are definitely places where it would be very difficult to live without a car, but it's pretty darn rural here and it's extremely comfortable to live if you are able bodied. If you have a bike, you can even easily ride to the next town (or the one after that). When I was teaching in the high school here, most of my students rode from 2 or 3 villages away, because there weren't enough students in the area to fill up the school. So depending on your definition of "city", I think it's completely doable. You just have to intentionally design the towns to be accessible. (It also helps that farms in Japan are extremely small, by law).