The key to it working is positioning your living space close to public transportation routes -- I have two el lines within walking distance and a bus outside my door -- and simply refusing to take a job in the suburbs.
We rely on iGo occasionally, but it really is quite seldom. We do most of our grocery shopping in small bits on the way home from work. We lucked into a used bakfiets last year and use that for big grocery trips and other hauling errands, and our 60-pound dog actually will ride in it as well, so we can take him to the groomer or the vet (or just for ice cream). The bakfiets is not a great solution for everyone given its prohibitive cost; we couldn't have bought one new. For trips to visit the family in far-flung places, we rent a car. What we've saved in car payments and insurance way offsets the expense of occasional rentals and iGo (and I've been able to justify two new bikes!)."