"For instance, consumers want fast and high speed rail and light rail in cities, yet the federal government is still subsidizing hundreds of billions of dollars to car centric projects rather than allowing municipalities and state governments to have control over those funds they come with strings attached that force them to choose car centric options."

Oftentimes that comes from road taxes, so it's really car use subsidizing the car-centric projects. If states and municipalities (and the voters) really want it, then why aren't they subsidizing the public transport options... choices - there arent that many who want it bad enough to pay for it.

"Affordable housing is another example. Consumers want reliable cheap homes but every single attempt to unseat obtuse regulations and policies that make home bulldog a nightmare across metropolitan areas all over the Us entrenched home owners fight in as many ways possible to keep new homes from being built. This pushes more people into farther out suburbs that makes an existing issue even worse."

Not really. Consumer polling shows people want things like bigger, fancier single family homes over basic small apartments. Of course they only want them in "good" neighborhoods too. These preferences are choices.

"The false dichotomy that it’s simply choice is not a good faith argument."

Dichotomy implies there are only two choices. I'm simply following the logic and data. As soon as you give people the resources for "better" housing/transport/etc they take it, regardless of the externalities. Check the size and quality of new homes, the requirements and accessories for new cars, etc. The standards and options for things only goes up as the affordability does. If you can show this is not true, then I'd love to see real world examples of the majority of people choosing smaller homes, simplier cars, etc when affordability is not a factor.

"And we subsidize a lot when it comes to oil, natural gas and coal,"

Do you have examples? Most of the recent subsidies in the past decade and tax credits I've seen have been around solar, more efficient appliances, etc.