Yes, but in the opposite direction of what you imply.
>More people living away from the city increases deforestation
Why would that be the case? Almost all deforestation is for land for farming, not for houses. How much oil is burned growing food and shipping it and storing it and lighting and cooling stores to sell it?
>is a net negative as far as lifestyle is concerned.
Not everyone values the same materialistic things you do.
>I work in the commercial arts world
That's a make-work industry that doesn't need to exist. Consider the massive environmental impact of your industry, and how it adds absolutely no value to society at all. Yet you want to stop people from living further away from massive disease spreading urban centers and growing their own food at a cost of zero burned oil?