Sure, removing parking essentially requires the neighborhood to become more self-sustaining. This works in really dense cities like New York and San Francisco but it requires enough desirability to fill the housing with people who have enough disposable income to replace the far bigger "catchment area" that the parking used to serve.

Which in turn affects the kind of economies that the new development can support. A car dealership? Needs parking and a large catchment area. Burrito shop? Probably not getting much destination traffic and can support itself on locals.

Those people may not be enough to support them. Cars take up space, but houses take up even more space. It is really easy for a Downtown to go into a downward spiral if you take away the ability of people to get there.

It need not happen, but all too often simple answers are wrong.