I don't understand these criticisms. As an American, I think our cities would be vastly improved if we copied this form of housing for lots of people, instead of just low-income housing. (In my city, the low-income-only housing is usually the highest quality housing across the city, and is far nicer than anything a mid-income person is allowed to purchase).
The current alternative that US prefers is far worse, in my opinion -- these micro-unit apod-ment things, with no personal space, no outdoor space, grossly overburdened personal-areas-forced-into-common-areas, and general dorm-room-for-life lifestyle.