I'm pretty split on this issue.
I personally have a 4x4. I have livestock, dogs & kids, have a smallholding & live rurally. I couldn't get by without my 4x4. It carries animal feed, bales of hay & straw, tows a livestock trailer & flatbed hay trailer. I use it in the fields sometimes too, to move stuff from one side of the smallholding to the other. I carry my equipment to & from home & smallholding. I put my large breed dogs in the back. I also do the school run. In winter it's essential - there are floods and icy hills between home & the smallholding. Anything but a 4x4 wouldn't do the job. But I also use it for ferrying kids around, the school run when the bus doesn't run, and also to go into the nearest town once a week. My 4x4 has a bar on the front to protect it from deer hitting it and wrecking the front of my car (we are surrounded by deer). I accept this makes it more dangerous for people, and I drive accordingly - bloody carefully. But I can't afford a second vehicle to be able to go into town.
I do think that 4x4 type vehicles are overused by those who really don't need them. I do roll my eyes a bit when I turn up to the school run (rural school) in my mud & cow shit covered vehicle (no point washing it off - it'll only be covered again in a few hours) and there are a number of parents sat there is showroom pristine 4x4s, who clearly have never seen a bit of mud. And yes, they do mostly sit there with their engines & air con running. I also think that many who drive these vehicles aren't as careful as they should be, with what is essentially a weapon. I drive lots of bigger vehicles (tractors, lorries, etc) and never forget the power of what I'm driving, and am very careful.
So do I think there should be less 4x4s in town environments? Yes. But not by banning them - unless we actually make towns vehicle free completely - now that, I would support. Pedestrianise all towns. Protect those walking in towns. But don't penalise those who genuinely need bigger vehicles.