You're violently agreeing. The point is, you take a large lot, you could build a condo building on it with five units, or you could build a large SFU. The OP's argument is five middle class people could outbid the rich guy. Except that the condo is illegal, the area is zoned for single family.

Another issue here is the wealth disparity. I think your typical millionaire could easily outbid five middle class families or even ten middle class families.