It's also a failure of politics. If you tell people you're going to raise taxes to pay for the road, you're probably not getting elected. Toll roads ideally are just another form of tax that is more sneaky than straight up raising taxes.
People won't stop driving entirely. Some are legitimately afraid of rain, sun, wind, snow, etc . Placing the toll booths every 100m would go a long way to reducing traffic and reducing dangerous vehicle speeds.
Sure. The church was super reach in middle age, they collected taxes on everyone and their monasteries were working hard and were very efficient. Also people made a lot of donations in hope of staying out of hell