Stroads are ugly, expensive, and dangerous

IMO TLDR: Expensive=return on assets from the perspective of the city. Low ROA=unhappy citizens.

Cities requires a minimum tax-revenue per square mile to pay for city services, including schools. Revenue comes in many forms (property/sales/income taxes), but are physically constrained by density (not just space).

The more spaced out a city is, the more expensive it is for cities to cover everyone with services (police, schools, etc need to travel farther).

"More profit" means happier citizens. Cities constantly in the red go into death spirals. Cities in the black have a better better schools, better police with less taxes, less debt.