The big problem with trams/trolleys is the investment in infrastructure and the loss of flexibility outweighs any improved energy efficiency you might gain.
Even light rail is expensive to construct, and it's really difficult to maintain the surrounding paving. So maintenance costs go up; also, car, bicycle, and pedestrian use of the streets is compromised by the rail system. The overhead wires are also a maintenance and safety issue, beyond the difficulty and expense of installing them. Plus, they're just plain ugly.
For a while, Philadelphia used trolleys and "trackless trolleys", which were electric buses powered by the same catenary wire system, but able to run without rails. But even those were hampered by their inflexibility.
If a bus route needs to change to accommodate new use patterns, you just drive the buses on a different path. But when that involves construction work over and through busy city streets, it's very difficult and expensive to adapt to shifting patterns.