And that is the problem. You're not the only one. Yes, if we turned the San Francisco Bay area into a clone of Manhattan or Hong Kong or Tokyo we could accommodate a lot more people. But a lot of people would not consider that a good outcome. People who like that kind of lifestyle can have it in any of the dozens of dense cities on the planet.
The SFBay area is desirable precisely because it is not (yet) dense. People move here because they like yards and redwood trees and vineyards and hiking trails. Manifestly there are more people who want these things than there is space to accommodate all of them. That is the problem.