On the contrary, I think flying makes a lot of sense in cities. What is the primary problem with driving in a city? It's traffic. The problem is that everyone going every direction shares the same plane and their routes intersect everywhere. Because of this, we have stop signs, stop lights, traffic circles, and so forth to decide who gets to use those places of intersection and when. That creates huge inefficiencies in travel because you are constantly stopping to give others a turn with that shared space, or taking your turn while others stop and wait for you. With more planes on which drivers could travel available, those going in each direction could be separated and would no longer have their routes intersect with that of others going in other directions. You would never have to stop except at your destination. All the roads would basically become freeways and every intersection would become a freeway interchange with ramps rather than stop signs, stop lights, or traffic circles.
Outside of cities, flying would probably increase your speed somewhat, shortening the travel time, but it's in cities where flying cars would really increase the efficiency of travel.
This would only work in large cities if you had 100% reliable computer controlled systems. Otherwise, imagine the nightmare of the typical city congestion in a 3-d environment from the viewpoint of the driver. Now add in the typical bad driving habits you see on the roads today. Driving slow in fast lanes, no use of turn signals, abrupt lane changes, crossing multiple lanes of traffic, etc.
I want no part of that.
Why does it have to be 100% reliable? Absolutely none of the transportation methods we have today are "100% reliable," so requiring that standard of any future methods is simply asinine. They just need to be better/safer than what we have now, not absolutely foolproof.