Thanks for this; it's a valuable concept I couldn't have articulated before. It seems I see stroads everywhere, and they do suck for pedestrians, cyclists, shoppers, businesses, and humans, but there isn't an obvious way to get from here to the improved future. At a certain population density, land simply is less valuable, no matter the road organization. I can imagine a town trying (and enforcing!) the street concept in a couple-block area, but how effective can that area be when everyone drives to get there? I almost suspect we'd need regular bus service, but at low population densities how does that work?
Use automated vehicles to supply an on-demand middle tier of transit. That layer could possibly provide transportation bridging low-density regions to a higher capacity fixed public transit nodes.
