Your own example is pretty interesting. From 1950 to 1960, the population of Reno (capital of Nevada) increased by more than 40%! [1] Of course you're right there was also a huge surge in commuting, but people weren't the only ones leaving cities. Businesses also moved outside cities, taking advantage of cheaper real estate themselves, and new businesses also cropped up to service the booming suburban populations.
And IMO this is all a much more reasonable thing to aim for. Density can only take you so far. There are hard limitations and it comes with lots of nasty stuff. I think the only reason things are taking as long as they are to naturally go this direction is because of the hyper-centralization of businesses and seemingly endless low interest rates, making companies with billion dollar valuations quite trite. And at that scale, the long-term cost impact of real estate in an ultra-premium location versus in the middle of nowhere is a rounding error. But monopoly money economics will end, probably sooner rather than later - and it may well end up solving this problem, alongside a slew of others.
Today, the sprawl has reached a point where commuting into the city is no longer an option.
That's why the old method no longer works.
We need to add density in the population centres where there are opportunities and jobs.
Not force young families to choose between a good job and a house.