Street cars are all about placement.
If you have a high amount of vehicular traffic moving on a regular basis over relatively short distances between two or more points then street cars can be a viable alternative to increased road size and parking associated with supporting more cars.
Once you have identified a location were streetcars will have the riders and alleviate traffic congestion related to separate vehicles being used for short distance travel, the next big problem is scheduling.
People will not wait 30 minutes for the next streetcar to travel 5 city blocks when they walk it or drive it in less time. Schedules need to be timely. A fact often over looked by municipalities looking at any form of mass transit.
Streetcars are by no means a panacea. They are one piece of the transit puzzle. Buses are another option. Street cars or buses can be very cost effective or very costly depending on how they are implemented.
As mentioned above, taxpayers need to make sure their money is being spent on the right solutions, not the profitable for a few people solutions.