I’d rather delete them than replace them. Move everything closer together again. But you can’t reverse time, so homes and parks are probably the best options. Businesses, museums… schools if feasible.
I saw a video about a development in Tempe, Arizona, along the Phoenix LRT that claims to be the first planned car-free development in America. It has narrow, winding pedestrian streets between buildings, zero parking, and buildings built in a more desert vernacular style. I'd love to see more things like that.
There's also the superblock concept, as best exemplified by Barcelona, which sounds very similar to what you're describing.