You're assuming I'm not aware of this, and yet you've explained yourself why you'll always struggle to get rid of them in practice - it's politically untenable to tell people you're drastically raising their taxes, even if you do explain to them that stuff they buy will become cheaper.
I fully agree that in an ideal world we'd follow the path you suggest, and similarly I've always argued that true costs should be pursued in other ways. For example, I've long been an advocate of the fact that health service costs for health issues that stem from pollution (i.e. asthma) should be levied against carbon emitting companies, such that the price of coal would reflect it's true cost, rather than have it's true costs hidden by subsidy to the tax payer. This would force energy bills up to reflect the true cost of coal and would bring down the healthcare bill drastically reducing the need for high taxes whilst also encouraging companies to move to clean energy because when the real cost of coal is realised it's astoundingly expensive compared to nuclear etc.
But as nice as doing this would be, and forcing people to understand the real cost and value of things allowing the market to work in places it doesn't currently because true costs are hidden, it's just never going to happen. The idealist in me comes second to the realist - I don't believe there's much value in arguing that we're stupid for not basing our lives around that which is simply not practical and never going to happen in the near term. It's a great philosophical discussion to have, and great as a very long term goal (decades away), but it really doesn't help us right now in the reality we live in.