I don't think that what this article is describing is similar at all to Eastern Europe-style public housing. The US also had a big experiment in public housing in the 20th century, that also had a lot of bad results.
Large buildings are harder to maintain and require more specialized labor.
Means testing and segregation also impacted public housing in the US. (Better not make too much money or you'll have to leave!)
There are several instances of successful public housing efforts in the US and Europe, typically more low rise or mid rise distributed properties.
If you’re a developer, then fighting against this group will take a lot of resources and it’s risky, so you can’t bet on medium density to make it worth it, you have to aim for more.