When I lived in the 'burbs, this type of project became popular. It felt oddly out of place, given the setback, architectural style and being surrounded by cookie-cutter houses.
Here's an example, in Oakville:
http://goo.gl/maps/f0xCE
But it would be so appropriate for certain properties on King Street in the core.
Just walk or drive west along King from, say, Wentworth. You'll see a number of vacant lots or "abandoned" (unrentable) properties, which would be well suited for this kind of project. The combo of live/work/commercial street-level townhomes with residential uses above brings good density and affordability.