What's the alternative? Ban the only kind of housing that developers, residents, and municipalities are excited to build and then blame capitalism?
You know things can land somewhere in the middle right? No need to be so intentionally black and white.
No! The alternative is explicitly to unban the kind of housing that there's demand for. Single-family zoning prevents capitalism from doing its job properly by limiting developers' ability to respond to demand for high-density and low-income housing. Getting rid of most single-family zoning wouldn't make it illegal to build single-family homes, but as the article says regarding Santa Monica, developers are eager to build high-rises and denser housing.