This makes a lot sense, but the obvious question is how do you prevent people from being forced out of their homes, just because the government decides to spend it's money on the military instead of building more cities?
Like right now, if you were to implement that in Toronto, a whole lot of people would be taxed out of their homes so that a developer could buy the land and build denser housing on it.
All the most valuable housing that's near subway lines is already at a relatively ideal density, consisting of townhomes, rowhouses, and semi-detached houses, whereas our suburbs and in-city suburbs are generally not near transit, and thus not nearly as land valuable and not as well suited for density.
It seems like we would end up tearing down all our ideal housing and replacing it with over dense housing, rather than building transit out to the less dense areas where it's needed.
I'm guessing they're worried about families being held hostage, threatened, and used for coercion.