This land area expands only linearly with the size the vehicle, but exponentially with the square of it's velocity. Smaller vehicles like these will be great for many but we shouldn't believe they are a panacea - a tiny vehicle going 45km/hr is going to occupy almost as much land area as a conventional vehicle going 45km/hr.
The only way out is to stop giving away public land for free. Someone who consumes 2000 sqft of public land for their transport currently reimburses the public the same amount as someone who wants only 100 sqft - $0 (99.9999999% of the time - the only exceptions are a tiny handful of contexts like toll road, NYC congestion area)