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That's one of the points I made, yes. So no, it does not still leave the problems of cars on the road, but also, it does it's just that it's a lot smaller? Getting mixed signals there.....

But if you do want to talk about that one footnote in parenthesis, "one vehicle making the deliveries" involves gas guzzling trucks and vans (which are still not trains, the whole hail mary of this thread) who set of using the vehicle capable of carrying all pending transportation orders, meaning horrible gas mileage, and still requires that road space to exist, not really freeing it up for "housing or parks or whatever".

Even then, it still has benefits, but comes with its own set of problems, like having to delay and schedule receiving the goods at a later time than when you could have received them, having to pay additional shipping costs (adds up for frequent periodic orders), or having each store cater to their own profit maximized shipping solution instead of coming up with a universal delivery one for that urban environment. It is far from the solved alternative you make it out to be.