That's a recipe for urban/suburban sprawl and an absolute disaster for the environment.

Even low density housing through basic human presence distorts natural environments.

It's basically like this in terms of environmental impact:

No humans >>>>>>>>>>> a few humans >>> many humans >> enormous amounts of humans.

Reversing the entire Industrial Revolution seems harder than just building more houses.

Cities are far more efficient than having everyone smeared across vast swaths of suburbia. And changing culture in a targeted way is not exactly an easy thing to do.

I don't think that's possible (other than indirectly such as by improving high speed rail so people can benefit from cities without living there). By their nature cities provide greater access to desirable amenities such as art, culture, museums, and niche hobbies.

Art, culture, museums, and niche hobbies are only desirable if the culture (other meaning) deems them desirable.

My dude, people have been making art for at least tens of thousands of years. I don't think people are about to stop now.

Has there ever been a culture that didn't value entertainment or art?