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^ Depends where it's happening. There are parts of NYC that are already too dense, or dense enough. Density is but a means to an end, and there is a point at which additional density has drawbacks but no advantages (in the form of additional services, amenities, ability to sustain retail and restaurants, etc.).

The ideal density is that which can sustain a bar on every corner, support a large variety of high quality neighborhood restaurants, coffee shops, and retail, maintain enough pedestrian traffic to have "eyes on the street" for safety (a la Jane Jacobs), make mass transit and roaming taxis practical and numerous, and create a general sense of vibrancy. If a neighborhood has all of those things, it is dense enough, and additional density can only detract from the experience of living there.