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My thought as well, the video Tom Scott did on the mountain town that has bespoke electric vehicles (and strict usage on them for needed business) comes to mind (R2oD1ZHNMFE). I don't know how much is law and how much is companies not caring to cater to that market (even with designs that they sell in Europe), but Kei-like vehicles can still be affordable without being fully unsafe (but the issue of safety is more about the market making larger-and-larger trucks and SUVs, and lack of viable car alternatives paired with high speed limits).
Higher cost really is not a fix. Other concerns like privacy seem like policy could mesh well with low-end (no internet connection, just-a-radio, common off-the-shelf parts, standards+no DRM etc). It would be nice for the option to exist in this space that US car companies are not trying to fill anyway.
@Fiivemacs
I'm sure a lot of the problems are regulation related. For example I don't think you can drive golf carts on most city streets.
Some preplanned communities have separate road systems for smaller vehicles. But if it's not baked in from the start, it's probably tough to add later.
Unfortunately, I think the auto lobby is largely responsible for much of this, and will fight hard to keep it this way.