It would be interesting if someone tried this in one of these larger cities with high rises like Singapore. You'd create a smaller groups with a sense of community while still giving members the benefits of living in a large city. The reason I thought of this is it reminded me of a strategy of using small bible study groups being employed in a large church that was part of my alma mater. The idea is that it was easier and more intimate in these small groups, so they'd have the ability to hold more personal sutdy sessions. Of course, they still belonged to the main body and had those advantages, such as a larger number of volunteers, etc.

Something like that could create the "small town atmosphere" many city dwellers seek without destroying the city.