USA doesn't let people who want to live in a dense urban area live there, since they mostly prohibit construction of dense urban areas so those becomes extremely rare and expensive. Europe doesn't prohibit construction of sparse suburban areas, you can find them around every city just by driving a bit outside the city core, nobody is saying we must remove those.

That's fine as long as it's sustainable - environmentally, financially, etc. I don't think it is. The wealth transfers from urban areas to the ever-expanding fridge can't continue indefinitely.