Is there data for how small of an area (i.e. they are arguing for)? I think Seattle has a good approach with urban villages (that are also easier to connect via transit), they just need to be somewhat taller and bigger until they eventually merge. The rich typically live in tiny areas and small cities; not wanting those tiny areas upzoned (to be clear, I personally oppose any zoning - let the market decide; but I can see where they are coming from) is not the same as wanting to squeeze the apartments into tiny areas.