This is not the full story, even before cars came into common use, society had to figure out how to manage pedestrians coexisting with horses and carriages on public roadways.
Eg. Check out the UK's Highway Act 1835 (https://en.wikipedia.org/wiki/Highway_Act_1835). It criminalized riding or driving a carriage on the footway (sidewalk) and made both pedestrians and drivers responsible for using due care to avoid collisions in the road.
This was a long-term societal shift to having dedicated infrastructure for both pedestrians and vehicles to avoid collisions, not some sort of sinister auto industry scheme.
As car ownership increased, it seems possible that norms would change a bit.
I frequent the UK. They literally put up BARRIERS around crossings to make it difficult for pedestrians to "jaywalk". I can hardly believe it!
Ironically, they make it more difficult to “jaywalk” safely, as they block the easiest place to cross, forcing pedestrians to cross at a cross junction typically.
Interesting note ... a 2017 review of 70 London sites where Transport for London removed railings found serious and fatal pedestrian injuries fell 53% in the three years afterwards compared with the three years before.
https://content.tfl.gov.uk/pedestrian-railings-removal-repor...
I think of it as a long term negotiation with society about what we are all willing to sacrifice for the conveniences of a new technology.
I don't think that negotiation ever ends, either. It just evolves with the tech. Robert Moses exuberantly covered New York City with highways during the mid 20th century. Each new bridge and highway he built induced demand for more cars. So, every road was clogged as soon as it opened. And his answer was always to build more roads.
Moses built a base of power that depended in part on revenue from toll booths. But, some of his projects were disastrous for communities and should not have ever happened. Because of his fixation on cars, and because of how he was benefitting from cars, he was unable to recognize that a city's transportation infrastructure must be balanced between different modes.
Personal cars are almost the least ideal form of transportation for a dense city and for intercity traffic. But once the power around a single technology becomes locked in, it can freeze the negotiation around it and the power structures can safely ignore any further resistance.
I remember a time when "internet addiction" was a thing.
Then everyone got smart phones and social media and now you rarely hear about internet addiction anymore.
... jay driving was a thing first.
I would suspect safety had more to do with it than anything else. The closest I've ever personally come to hitting someone was because they jaywalked directly in front of my car, after walking between two parked vans so they were not visible until they strode right out in front of me. It was a near thing, but my reaction time is good and I am pretty attentive to what is in front of me. But physics is a harsh mistress, it is a dumb game to play.
We're not going to get rid of cars, much as some people think that would be a net improvement, so the sensible thing to do is make pedestrian crossings plentiful, obvious, and respected by both drivers and walkers. Public space is shared.