If you have a narrow street, less people drive, and thus there is no issue getting an ambulance through. I see ambulances stuck in traffic on Manhattan avenues all the time (we should put grade-separated bus lanes on all of them, IMO, partially so that ambulances can always get through).
It works for cars, since there are acceptable alternatives (biking, walking, carpooling, Uber, etc). It works less well for housing, as leftist NIMBYs often advocate, since one alternative (homelessness) is very unappealing, and the other (living somewhere else) just exports the problem.
Yes. To decrease demand, you limit supply so that the price goes up. This can work dramatically if you increase price high enough that alternatives are cheaper.
In the case of transportation, price is measured in time and convenience as well as dollars.
So we want to shrink our road infrastructure to drive the cost up in terms of pollution, fuel costs, time and convenience? This way less people will drive. I would propose that you are forgetting that you are going to price transport into the hands of the wealthy and business who will effectively rent-seek to loan cars or taxi people who cant afford a car around.
The idea of shrinking our roadways to discourage use of vehicles is challenging in a practical sense and it just cleaves off another aspect of life for business and the wealthy to enjoy without plebs interfering with the roadways they paid & still pay for.