Yes, it’s totally rational to want to live in a SFH. That’s the beauty of allowing (not requiring) other types of construction: people like me who don’t want to live in a SFH can and people who want to live in a SFH can continue to.

I even suspect SFH owners will see some benefits. Their underlying land will become more valuable as the parent explains but SFH buyers will no longer be competing against people who don’t really want a SFH but have to rent or buy one because that’s all that’s available. A lot of my friends end up doing a group house thing with 4-5 people because they have to live somewhere without apartments.