Walt's vision for EPCOT the city was going to house the CM's that were working at the park, the proposed airport and other facilities. Honestly the housing situation for international CM's and college program CM's isn't THAT much different, they have their own housing on and off property, but use buses to get to their jobs.
Would it have worked? I think with enough of investment and help from other sponsor companies, absolutely. Remember it was planned as "experimental" and I don't think people give it enough of credit. The only real differences were the layout and the transporatation systems....SUCCESSFUL transportation systems like the peoplemover and the monorail.
The two main drawbacks I can see is that since it would be open to tours by the public, the CM's would be "on stage" a lot more frequently than they would like, and, as stated, upgrading the infrastructure with new technologies would have been more challenging.
We have some major problems in this country with a rapidly growing population of people who shouldn't be driving after a certain age, and a massive infrastructure that puts the automobile as the main form of transport before anything else. There's a reason why the U.S. takes up a full 25% of the world's oil supply ALONE.
Whether EPCOT the city would have succeeded or failed, we would have learned so much from it, that we could have improved upon it and built it better elsewhere.
The closest thing we have to this idea now is Masdar in the middle east.