This is exactly the type of development that is happening in other cities along their rapid transit routes (whether that be bus or rail - see Calgary builds along their line).
It makes total sense to increase density close to amenities and public transit. I agree....design is pretty crappy...but the idea/concept makes perfect sense to me and hope it is successful enough to prompt more similar development.
This type of development would also make people like Mr. Naylor in Varstiy View very happy, as development would not be in his "neighborhood".