ADUs (accessory dwelling units) are smaller than neighboring buildings, so they don't impact views at all. However, many California cities still banned or severely restricted them, until they were forced to stop by last year's state legislation.
Don't worry, the NIMBY's will move the goalpost and start complaining about street parking and traffic. That's all my neighbors on Nextdoor complain about.
I think that this is the first real plan. After 20 years of in laws / granny flats the market will move to condos as the increased local density shifts things. Major roads and transit will see taller buildings with a gradual expansion of skyscrapers in downtown areas.