https://pbs.twimg.com/media/B8cMeVTIMAEMyzk.jpg
For comparison, a nearby city (Mumbai) takes a more SF-style approach - height/FSI restrictions, rent control, etc - rent there can exceed a lac/month (yes, Mumbai rent is a little less than NYC rent).
These housing issues work out to nothing but simple arithmetic - if N people want to live in a region and you have K < N houses, N-K people are unhappy. Set K=N and all the problems are solved.
Anyway, it's the mutation of a city into another one, there are too many variables. Higher density sounds appealing but it may bring other problems, and the old residents end up displaced anyway. It's not going to be pretty, and the result is not going to be the San Francisco everyone loves, but well... it's not my city so why do I care.
Edit: quite a few edits
You are right that new Pune isn't the same Pune it used to be (or so I'm told) - now there are Gujus, Punjabis, Africans, white dudes and other non-Marathis there. As an American I'm a bit unsympathetic to "there goes the neighborhood".
Also, it's not about ethnic make up, it's about culture and identity. The neighborhood can go in a wildly different direction, and that's what people are lamenting, specially if it's culture-producing centers (let's admit it, the most that tech nerds produce are open source libraries for other tech nerds to consume). Anyway, urban centers come and go, SF's death will be a sad thing, but it happens all the time.
That largely depends on how quickly you want to build. Chinese companies can build whole skycrapers within weeks. http://www.theverge.com/2015/5/14/8608039/building-timelapse...
It won't happen on a purely group vs. group basis, that's just a simplification for the purpose of forty-word internet comments.
* Repeal Prop 13. While Prop 13 stands, cities have a huge interest in combating new residential development because it'll erode the tax base. It serves as a tax on newcomers and discourages people from moving and downsizing.
* Prohibit rent control, it's the surest way to destroy housing stock short of bombing.
* Strip local zoning authority from municipalities. Los Altos Hills has a 1 acre lot requirement and prohibits multi-family construction. Menlo Park has a 30' height limit and a 15' curb setback requirement.
* Institute land value tax. It's inexcusable that 24th Street is surrounded with two-story construction. Compare it with Central Square in Cambridge: https://www.google.com/maps/@42.365178,-71.103326,3a,75y,273...
Maybe that's the answer right there. San Francisco doesn't need to fix itself if Silicon Valley can be made attractive, and Silicon Valley has a lot more space than San Fran.
I'm sure it's not as simple as that, but it makes sense that if building is very constrained, as in SF, then it increases the pressure and raises prices.
Redlining definitely worked for a long time.