There's an important concept to the success of city planning: the alignment of incentives. When transit is faster and cheaper than driving, people don't drive as much. The individualistic personal freedom of the automobile doesn't outweigh those practical aspects of getting around. People generally make pretty logical decisions about what they want to do. I'm definitely in favor of congestion charges in certain areas…
Libertarians are usually much more in favor of taxes to on externalities rather than outright bans. So I dispute your characterization. I agree with the rest of the post though, I think taxing externalities is the right thing to do. Cars have gotten a gigantic subsidy for far too long. A car is allowed to take up 140 sq ft of land for free in one of the most expensive places on earth.
But it doesn't really matter to me if my characterization of libertarians isn't 100% accurate because I have no respect for anyone who calls themselves libertarian in any way.
That ideology is a swirling bag of contradictions and people who claim to be libertarian usually just circle back around to being anti-regulation, pro-laissez faire capitalist, pro-consumption, anti-worker conservatives who don't want to admit that they share a bed with the more ugly side of that ideology.