I think "high-density" is a bridge too far for VT, but larger areas of "medium-density" is perfectly realistic and arguably the only real solution to VT's housing crisis. The local downtown is not going to be harmed by a couple more blocks of 3-6 story buildings....like the ones that are already in the part of the downtown area as it is.

They're also the only places in VT that typically have the utilities in place to really support significant amounts of housing.

And yes - having more people living in town centers also makes transit as normal transportation choice more viable. "Last-mile" is a big issue otherwise.