Agreed. Glass bottles were the absolute norm in Europe up to the late 1980s. A widespread re-use network for glas bottles existed (and still exists, esp. for beer bottles). Add on top a glass recycling system dor single-use and spent glass bottles and recovery rates were very good, albeit expensive in terms of transportation and energy use.

Independent of glass, according to Wikipedia over 75 % of all PET-bottles in the DACH region are also re-used before they are recycled (which can mean burning them). So, yes, it is absolutely realistic to have a system where the majority of bottles are reused.