I can understand why governments would push for something like this after 9/11, though it of course goes without saying that this is a totally unacceptable violation of someone’s basic rights. It also goes without saying that governments always want more control over their citizens, but what exactly are they so worried might happen, right now, in 2025 or the near future?
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Some people would be willing to live like that. But the rents per ft^2 or m^2 would be abysmally low. And renovating the buildings would still be very expensive. It may be physically possible to turn those deep floor plate cube farm skyscrapers into housing, but it isn’t financially possible. The money would be better spent tearing the buildings down entirely and just building entirely new residential buildings from scratch.