There are cheap high-density areas and expensive low-density areas. According to your and that blogpost's logic, Silicon Valley's high housing prices in single-family neighborhoods and the fact that people want to move there are proof that people ACTUALLY want a suburban lifestyle, not an urban one.

Looking at where people live and where they want to live is a better source of their actual preferences than looking at housing prices in a handful of expensive neighborhoods and guessing what the average person wants.