So the logical extension of your idea is to replace parts of San Diego with Kowloon walled cities? 🙂

I see no problem with encouraging Eastern-type “sprawl” where you have smaller individual houses (not McHouses) on a true network of streets, often with businesses and business centers mixed in. It’s the network aspect, as opposed to having only a few entrances from major roads, that does wonders for walkability and biking.