Of course, it's hard to generalize. Sometimes a car is the best option, sometimes it isn't. The location is a major factor but not the only one.
With that said, I tend to err on the side of not renting a car, rather than renting one. If there are other reasonable transportation options, I will pursue them first. I find it less stressful, more interesting, and a better experience overall than driving. And I have found that for the vast majority of my trips, a car is not necessary.