Some people prefer a single family house with a yard, and some prefer to pack as many bodies as you can per square inch of land area. Density is good early in your life arc, but there are diminishing returns after you've already made a threshold of social contacts and investments.
There is a massive advantage as a society to build density as it creates more innovation as people and ideas mix.
Maybe your argument should be stated another way, not everyone can have a single family home with a yard.