I'm not surprised that it took a literal nation to overcome the resistance to any serious development by that particular group of NIMBYs. Score a win for decentralized power.
I don't think there's any racism at all on their part though, as much as the article tries to play that up. They simply hate idea of downtown expanding into what they view as their perfect suburban neighborhood and they are well organized. They always oppose high density development regardless of who proposes it. This has nothing to do with "Canadians" generally, who don't give a shit as a broad group. This is about a small group of homeowners in a particular area of Vancouver.
This development is just what Vancouver needs, and so long as it actually happens the city will be better for it. It's also great to see first nations or whatever we're supposed to call them get a big financial win like this too: By providing what the market needs. The only way to move past what happened in the past is well earned financial success in the present.
I have two predictions:
1) This will have more positive impact on people's ability to afford living in Vancouver than anything the current group of clowns ruling Ottawa do.
2) In spite of the Kits homeowners fears, the expansion of the city through this development will make their property even more desirable and valuable.