I’ve lived in both. Both are fine and serve different communities and different people at different points in their lives. Ideally these different size dwellings are mixed in to the same neighborhood.

I didn’t mean to suggest one is bad (though I think skyscrapers are an anti-pattern as well just less harmful) - just that some Americans will paint any attempts at meaningful urbanization as Hong Kong as opposed to their current size home when the reality is there isn’t a size trade off that needs to be made you just need to do more with how the suburban neighborhood is built/zoned out.