There is plenty of room for suburban sprawl, but many cities desperately need an alternative to large houses and suburbs. I have provided it. You and others are not able to recognize it because it is actually a novel idea.
As many other commenters in this thread have indicated, this is not a new idea by any means. There are many examples of tiny units and condensed urban spaces all over the world, and they're not popular.
The units I portrayed are nothing like dorms and they are not apartments, so you probably didn't actually read it. Anyway it really doesn't matter what you think. Since this whole concept is in fact a new idea, it will be quite hard to market and easy for the average person such as yourself to dismiss.
If your site cannot explain the concept in an approachable way, saying "you're just too dumb to get it" isn't going to help. If you find that you have to say this to someone, it means that YOU'RE the person with the communication problem, not them. This is a very important principle to understand as you seek to gain traction for your concept. Instead of blaming people for their opinions, understand that this is a real, organic impression of the project and that it's likely representative of what at least some random segment of the population is going to think. You'd be wise to note the concerns and work toward addressing them.
I didn't read the full page word for word, no, but I did spend a good 3-4 minutes skimming it, and I watched the embedded video, which is much more than most people who come across a random website do. Please find a good mentor who can help you take criticism without being dismissive of a potential customer who is providing feedback.
You were never a potential customer.