The USA sustained a huge horse population pre-engine. While quality of life was lower, the horse energy cycle was totally renewable.
The issue of industrial farming using oil, is a separate problem, and one that eventually will have to get addressed. Either through some innovative battery technology, or alternative fuel like hydrogen.
But even in pre-engine United States, horses weren't one for every person, they're relatively rare, because they're expensive to maintain, they eat a lot of food right, they require daily upkeep, veterinary care etc huge capital investment.
I think in the right green sustainable system, people would live close enough to where they work, where they wouldn't need to travel vast distances every day. So in the infotech economy, that means people work from home, no commute needed. Just food delivery which could be batched, buses, or even the rare horse-drawn cart for a neighborhood.
The rural population that commutes a distance to work, factories, manufacturing, those would be the hardest to adapt to a non-vehicle lifestyle. I'm not sure how you could do that without moving a lot of people.
One possible reason people don't like rural living, is if you got all the rural people to live in a city, it would raise city housing prices, and if they were invested in property that might be to their advantage.