My point about St. John's isn't about living in the country or in suburbia, it's that people who want a suburban lifestyle could all live in villages and towns on lakes and coves. There could be a hundred places like this:
It wouldn't drastically change distribution of services or convenience or anything, just people would live in really nice places instead of really dumpy places.
It's not really that simple as you have servicing issues, density levels (it would be much lower density), etc.