Not really forgotten, but trams/streetcars definitely went out of fashion in many places and have been making a comeback in the form of modern LRT systems.
Many tram lines were built by developers at a time before cars were affordable. Otherwise there would have been no way for the homeowners to commute to work.
Yes, except I don't think developers have built tramlines anywhere but the US (and also the expansion to the suburbs didn't quite happen that way). I'm talking about the period of time that in Europe started in the 60s, and in the US earlier due to the earlier rise of the personal car, when many cities abolished their tram systems due to being "old-fashioned".