So, I feel like 2, maybe with 3 in certain high-traffic areas, would be a good idea, for a couple reasons:

1. increased visibility for vehicles, particularly in places with a lot of pedestrians, who might not all have their own lights or be too inebriated to use them.
2. nighttime socializing outdoors, such as markets, streets with lots of nightlife, plazas, etc. Sure, small personal lights could become incorporated into fashion, but those also need to be powered, and would have to illuminate faces without blinding anyone. Public lighting just seems easier.
3. less isolating for night shift workers (if that’s a thing in the world you’re writing).

Could even have 2 shut off in quieter neighborhoods that have no open businesses during the wee hours.