Densificatoin causes enshittification spiral. Each successive generation lives in worse conditions. This is an inherent property of densification.
> The sewer and water system to your house is subsidized.
It isn't. I'm paying for it from my taxes (that's why in Seattle my water is more costly than in the middle of a freaking desert).
> Snow removal from your cul-de-sac is subsidized.
It isn't. I'm responsible for keeping it clean, and I was once fined when I failed to do that.
> Many people enjoy living in a dense environment
The vast majority of people want to live in single family houses (90% or so - https://www.redfin.com/news/millennial-homebuyers-prefer-sin... ). They simply can't afford that. And of course, the psychological defense mechanism is: "I never wanted it anyway".