Downsizing a City

The city of Flint, Michigan is looking to downsize. The city, which once was home to more than 200,000 people, now is home to a mere 110,000, of which a third are below poverty level. City leaders are suggesting that the city become much more compact by demolishing outlying neighborhoods to increase density for a more livable city. It's an interesting idea in a place where foreclosures are happening left and right, the infrastructure is too big for the population, and where decline seems slated for the city's future. Read about the idea in The New York Times. What are your thoughts?