If you rented or bought a house close to a grocery store you'd mostly be able to do it.

Very expensive to do. Also due to zoning laws you'd have a hard time living near a grocery store since they're literally not permitted to be next to each other in most places.

Yes, there are a lot of situations where someone would need a car. However, the difference lies in how big "a lot" is. Right now, pretty much everyone needs a car to survive unless they're deep in a city center. This should not be the case.