The UK currently buys more new cars than anywhere else in Europe as well, partly due to credit availability, but clearly there is demand, and there is a huge pro road pro motorist lobby, as is clear when fuel taxes are increased.
So I think the DoT have ended up reflecting largely this pro car part of the UK.
http://www.ssti.us/2013/12/new-travel-demand-projections-are...
Admitting the party is over would offend very powerful monied interests. Follow the money... a lot of money is made building and selling exurbs, and a minor secondary industry is going to have political problems stating the high level policy change of "the party is over". A mayor, governor, president needs to state the policy change before the pothole filler is permitted to observe it. You see this phenomena in economic figures and in the meta selection of economic figures (the Dow, the unemployment rate, the GDP, the .gov inflation rate all used to "mean something" to the lifestyle of the general population. Not so any more, they are meaningless now in practice.)
[I'm in Scotland where good old low speed rail seems to having a resurgence the new (re-opened) line from Edinburgh down to the Borders looks fantastic - I'm kicking myself for not buying a house in Heriot a few years back].