There's no reason to have this kind of thing be an example scenario because that's not how housing gets built. SF isn't tearing down 100 unit SROs, they're tearing down one story commercial.
What happens when you replace 150 SROs with market rate condos? You make 150 of the poorest people in the city homeless, and you remove a tiny bit of competition (maybe) at the higher end of the market. (You’ll note that this post doesn’t discuss who is evicted.)
At a minimum, it is the responsibility of the simulator to show that their simulation reconstitutes reality before it is to be trusted for any form of prediction.
The only “powerful message” here is that Sonja Trauss is running for office on a pro-development agenda.
And the model exactly models this, showing that as long is M > N, everyone will will get more housing. If you run the simulation you can see how it does this, market rate housing captures people who can afford it, they move out of mid-tier housing, which captures the folks who want mid-tier, which frees up affordable units that were being occupied by people who could move up.
Say someone proposes to demolish a 100 unit SRO hotel in the Mission and replace with with a high rise luxury condo building with 250 market rate units. There will be a big protest about how gentrification is pushing the people out of their own neighborhood and where will the people in those 100 SRO units move to? etc etc etc.
What this tells you is that after adding an additional 150 houses all income groups will have more housing opportunities period. That might seem non-intuitive but the model works.