Guess who fits that demographic? Young single people and young couples who go out. The average middle age crank needs a house without shared walls and space.
There are individual preferences at play here. No one chooses a high rise, it's just more affordable. The exception is amenities, doormen, other services.
The uncertainty around neighbors and the obligation to be tolerant is why single family houses are preferable to some people. Barking dogs when owners are away are another joy of apartment living.
The solution here isn't to pretend that high-density buildings aren't needed, because they absolutely are; rather, it's to apply and enforce reasonable standards around noise insulation in shared-wall units, and to reduce the time and expense of the permitting and planning process in general so that there isn't as much motivation to cut corners to save money on the back end.
So of course it's one of the first things to go. Everyone always chooses to pinch pennies instead of do the right thing.