I don't really understand why one would make it a line? If the objective is walkability, wouldn't it make more sense to arrange apartments in a square or - if you want to go 3D - a cube to minimize distance between occupants and shops etc?
Also seems like a good way to control a large population. Can't have that large of a group gather and a small force can effectively cut the city in two (or more) segments. If you shut down the train system people can't go too far to other parts of the city. I imagine this was also a consideration.
They state this explicitly in the 2-minute intro video: https://m.youtube.com/watch?v=0kz5vEqdaSc
But it's a sham. They'll never get 25% of the country's population into one building. It's just a PR exercise, a concept car if you will.
Econ has a similar concept for competition , iirc, “Hotellings line”.