Self-driving cars and robotaxis were the ultimate realization of the promise of "mass transit for people who hate mass transit" which is basically "what if a bus, but it's a taxi." Before we got to robotaxis we had endless attempts by Silicon Valley types to give us "buses on demand," essentially buses without fixed routes but you tap your app and they pull up to your corner instead, because none of these people will talk to anyone who knows anything about anything.
Robotaxis don't work and won't work, and even if they did they wouldn't solve the congestion or cost problems. Musk promised existing Teslas would all be robotaxi-capable by the end of 2020, and journalists dutifully typed it up.
Transportation policy and investment is made by people who can't envision not traveling everywhere in cars. People who don't comprehend that their "resort town" and "European city " vacations are largely about paying a lot of money to temporarily experience just that (people in small and midsize European cities often own cars, they just don't use them for everything because they don't have to and being able to walk to buy a baguette in the morning is pleasant).