The issue is that the residential density of suburbia (the vast majority of Australia, Canada, NZ and the US) precludes mixed use zoning.
Most suburbs don't, for no obvious reason. I did complain to the Mayor a few years ago that the grocery store four blocks from my house has only street access and no sidewalk access.
I'm not at all sure why the author seems to think that converted garages are great business incubators. That's a terrible idea. It's what my uncle did for his cabinetry business, but that's largely solo. I can't imagine wanting significant business traffic on residential streets.
The causality in your statement is backwards, because the lack of the latter kind of zoning is exactly what prevents inner suburbs from densifying organically. The current zoning in most of (at least US) suburbia is what artificially caps density.