This is more in the direction of what I'm talking about. I think it's a pretty good model and affirms not contradticts what I'm saying because you do have to sacrifice drivability (unless you can just add streets like this - but I assume not).
I also think that residential streets are often under-utilized, though (mostly existing to connect houses to thoroughfares), and I'm skeptical that drivability is being sacrificed all that much—I still don't have statistics but IMO there are plenty of places to drive and I don't find my neighborhood hard to navigate by car. Just one person's experience, but I think it's a nice, cost-effective solution that I hadn't seen before I moved here.
(I have a bike and commute with it most days, but I also have kids, so weekends are all driving, and I sometimes need to drive to work too, for one reason or another).