The analogy is getting strained at this point. Not being able to build new SRO housing doesn't mean we have to knockdown all the SROs and replace them with high rise luxury condos. That might even increase housing density if a 5 story building is replaced by a 15 story building. That doesn't mean the people displaced by the new construction will benefit in any way.
And what people call 'luxury jet housing' is usually really sad 600sqft housing that would be called honda fit housing elsewhere.