I don't know where you're getting "too dense" from. This neighbourhood can handle a LOT more density.
Is there something wrong with renters? I'm a renter and love it: freedom!
Vaughn was on top of his game (he really is good isn't he!) and calmly explained that the OMB grants height based on the surrounding structures and not what might be most appropriate for a certain site. Because of this, if you give one developer 40 stories, they all feel that they are entitled to that, even if their plot doesn't appropriately mass the height. He did say that he likes tall towers where appropriate though.