Sorry to be a bit confrontational, but can you please substantiate your claim of "Most areas of Silicon Valley are militantly opposed to anything that looks like high-density construction" with data? Are you involved in a local Bay Area government? Are you working to change the things you don't like?
The article, and this response is very frustrating to me. The notion that the government is broken and that our policies are insane and that politicians don't care just does not match my personal experience. Yes, there are many, many problems -- from the garden variety to the wickedly complex. I can however comfortably say that Palo Alto is generally run by decent, intelligent people responsible to an engaged, accessible city council.
Available and affordable housing for example, is and has been part of the city plan, done in coordination with the Association of Bay Area Governments[1], who develop regional growth projections and plans[2] that cities are required to incorporate into their general plans. These plans are created in concert with regional transportation, environmental, etc. plans. How the growth is managed within each city is up to the city of course -- and that's where the NIMBY and rich vs. poor issues are played out on the ground. I find it absolutely challenging and amazing to see (and be part of) the balancing of the various factors to actually govern. There are winners and losers in every decision, and it's important to remember that we're not playing a one-round, zero-sum game.
I can't say anything about the state and federal governments -- but it's easy to get involved and make a contribution at the city level, and absolutely will be enlightening. The first step in conquering the "denial of reality" problem you complain about seems to me to be understanding how cities actually work, and then working to make some constructive improvements.
[1] http://www.abag.ca.gov/housing-top.html
[2] http://www.abag.ca.gov/planning/pdfs/SFHousingNeedsPlan.pdf [PDF]