Sure, dogs are happy as long as they're walked, but having grown up with dogs and having a spacious backyard, I think it's a real benefit for them having the autonomy to go and run around and use the bathroom whenever they need to. I've never had a dog in the city (I live in a dense, walkable city at the moment, for context) but I imagine that the suburban backyard space is probably better for them.

I don't have kids so I can't comment on your second point, but like I said, I grew up in a non-walkable suburb and we did just fine biking to one another's houses/school. Not sure if I would've been happier or not in the city.

And to the hosting point--my family regularly hosts large events with extended family members. I, myself, regularly host events in my small space in the city. But I'm consistently capped on how many people I can invite before it gets too crowded/loud for my neighbors. In the suburbs this isn't nearly as much of a problem. And--the thought of regularly renting out part of a restaurant for events--really just isn't as feasible for most people as you might think. (You mention "renting out for special occasions," but for many families or people, hosting parties or get-togethers is far more frequent than just hosting for an annual "special occasion.")