I ditched my car in 2008 and moved to Cambridge, Massachusetts, one of the most walkable cities in the US. That was one of the best decisions of my life. My daily commute is a few minutes of walking. The city is very compact, meaning every place I go is within walking distance or a short subway ride.
car ownership needn't be a huge expense that locks you in. I'm leasing one with my wife and frankly, for the $250 a month I get to take day trips out of nyc every weekend, which frankly is one of the few ways I've found to truly survive city living :)