Zoning and land use planning are a lot tighter in incorporated cities than in unincorporated rural communities. Density can only happen where utilities are available. As the city fills up, we'll see more and more development along the periphery that uses huge lots (to handle septic fields) that will end up taking much more space than (relatively) more densely packed suburban neighborhoods. Dieppe can put much tighter controls on the types of development going up.
Not to mention the tax argument - people living in these surrounding areas will almost certainly work in the city but not pay taxes there - meaning they'll be contributing to infrastructure wear and tear, traffic etc, but not paying towards upkeep.
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