Earlier quoted context omitted.
It doesn't fix the problem of having to drive 40kms a day to go to work and the fact that many people don't live in the city because it's more expensive. So now you have two problems: you have to convince them to bike and to live in smaller houses spending more money
I don't see how that follows? If anything, we'd be suggesting bigger houses. Tall and with nice and large flats in them. In the city centres where that makes commercial sense. Just allow tall buildings, and let developers worry about whether they _should_ build tall.
You have to consider that we in Europe live in very old cities where what you're advocating for is impossible and even if it was possible, it would be crazy.
I live in Italy, Rome, Milan, Florence, Bologna, Naples, can't build taller in the city centre without ruining the city forever.
Turin is not Rotterdam.
Milan does it a little, but a skyscraper can't solve the problem of the literally thousands of people working for the big companies (mainly banks) that are building them.
They can at best concentrate _some_ of the commuters by concentrating the higher level managers in the same place.
That's it! And it took Milan 10 years to get it started by renovating areas of the city close to the stations and not too far from the centre that were once almost abandoned.
With the renovations going on prices have skyrocketed, so more people go to live further away, that's why the larger companies have offices near the highways, where it's easier to gather people scattered on a large territory and build giant parking spots and that's why people in the end need cars.
There is also a large number of people that could use the public transport, but are not using it.
They are not going to bike anyway.
So housing is only part of a larger problem that is not context neutral.