I agree. This is one reason why I want gas prices to go to $10/gallon. It will hurt, but maybe we'll start having some serious conversations about our awful transportation system and city design
That's what how we got fuel economy regulations in the 1970s. But it didn't really usher in a golden age of public transport. Probably would just help Tesla and BYD.
It'd also be nice because cyclist deaths in the US closely mirror gas prices. When gas prices drop, people drive more, and injure/kill more cyclists.
Sadly commuters are the least price sensitive, any gas price which would be enough to convince people to stop using gas would justify buying an electric car. There's also not really an alternative in most American cities as the density prevents public transport.