The problem with NIMBY absolutists is obvious -- it becomes impossible to expand the housing supply in areas that need expansion.
The problem with YIMBY absolutists is also obvious -- it's probably not ideal to build a 30 story condo tower in the middle of a neighborhood of single family homes.
(Though, arguably a 30 story condo tower is better than a housing crisis, but the Strong Towns proposal is geared towards never letting a housing crisis happen in the first place)
The Strong Towns compromise is that it should always be legal to build the next increment of housing stock relative to whatever is the most common in the area. Where the increments are defined something like: single family -> duplex/triplex -> row house -> low rise apartments -> mid rise apartments -> high rise apartments. In a neighborhood with a majority of housing stock at one level, it should always be legal to build the next level.
The idea is that it allows neighborhoods to "thicken up" over a few decades.