You're right about linear sprawl. The shape of the city is a bit odd.
EDIT: As for the bubble... I think we have some unique circumstances that will help lessen the impact of any crash.
First, our economy isn't reliant on the housing market. The housing market is a result of the strong economy. Once the oil runs out, we're up **** creek... but that won't happen tomorrow. So our economy should carry the housing market relatively well compared to, for example, the States.
We also have a very high percentage of the population that is or is willing to go where the work is (Alberta, etc.) but still pay to maintain a residence in Newfoundland. Many workers, especially those who work seasonally on the mainland, spend as little as they can up there and bring almost all their money home. That would continue regardless of what happens to our housing market.
Is it crazy to think these factors would make a difference? I hope they would.