I agree with you. This idea sucks and is just another stepping stone towards a THX1138/Logans Run/Clockwork Orange dystopian society.
So if young people starting out are happy with these, they should be denied them and forced to live in larger, more expensive apartments? Like someone else said, young people starting out will be at work, out on the town, or sleeping. What use would they need for a gargantuan, more expensive apartment?
If there was a market need then a private development company would have already built them rather than spending my tax dollars.