I would tell the same story, but the root issue is cars. Housing density would have remained high if not for car dominance.
There are two things that I am becoming more and more willing to believe:
1. We live in an age of entitlement (I can afford it, it is possible, it is legal, I want it, therefore I will do it). There is a good chance that this is how we will be remembered.
2. Convenience is killing us and robbing us of the activities that actually provide satisfaction. We fall for this because we think we desire happiness and that hedonism will provide it, when in reality satisfaction/contentment is what we truly desire.
Also properties in Japan generally depreciate like cars because it's a seismic area and newer buildings are typically better equipped to deal with that, so it makes sense to tear it all down every 30 years or so.