As a concrete example: to build a building for 100 people, one must have 100*500 = 5 hectares of space around the building, reserved for a green space only, not parking lots or such.
Buildings would be more spaced apart and would not trap heat so much like traditional dense designs, so urban centers would be cooler. I dare to claim that people would be less crazy and generally happier and healthier when living like this. Over time, building less densely would see all kinds of positive effects compounding.
The green space could be used for many good things, e.g. growing hyperlocal food like vegetables, potatoes or whatever grows well in the climate, for having tree-shaded places during warm days, for just having a piece of nature to go to quickly and easily. Smaller batches of forest shading a path could connect multiple buildings built with the same ideas, and so on. It would be possible to use bicycles or walk along these paths.
In a nutshell, if one has to build high, then make all multi-storey buildings like a stacked nano-village surrounded by a larger green area/forest. Based on my subjective understanding very few people actually like the ground floor so that's a good place to put local small businesses like barber, shop, bakery, café, and so on.