Yes they should - high density housing and everyone having to commute to the same few square miles in the middle of a densely populated area is one of the biggest scams of our time.
To each his/her own. I live in one of those "high density housing" places you mention and I have to say it's quite convenient to only be 3 tram stations away from work. It's actually faster to get to work using public transportation compared to taking the car (cause of difficulty finding parking). And half of the times I choose to walk to work anyway, it's a very effective way of relieving anxiety stress before the work day starts and of decompressing on the way home at the end of the day.
I live in one too - if we spread people out a bit more into localised communities and make work from home culture a real thing, all the pollution and lifestyle issues you get from high density housing and everyone having to work in the same few square miles would no longer be a problem.
I see one car accident on the sydney harbour bridge delay thousands of parents from getting home before their children's bed times - it's just not the right way to live, no wonder everyone is depressed and family units are struggling.
I live in high density housing - it's like being a caged hen compared to the freedom I had being brought up as a child in the countryside. The noise, the pollution, the high house prices. Not good.
Biggest scam? That sounds like heaven to me. I, however, would willingly live in the middle of Tokyo. (Perhaps we can alleviate the problem by having a better rapid transit system?)
The alternative is low density housing and everyone having to commute to the same few square miles in the middle of nowhere with no services culture or energy..