That's exactly the most interesting point in that article. Not the "green town BS" I expected. Rather a "folks, let's return to the basics". And what if we applied the same in Europe by rebuilding a medieval town model with modern technologies? It's already happening in Germany, where medieval houses get renovated with better isolation etc. You'll never see these houses for sale on any agency or newspapers because it's all sold to friends or family - the demand for these is just too high because of the incredible quality of life and the feeling to live in a special place.
They are just doing exactly this in Beijing, rebuilding those square houses around courtyards called siheyuan, in alleys called hutong. They progressively renew blocks one after another, imposing strict architectural rules. I live in one of them, I get traditional Chinese village life, but with Internet connection, cars and toilets inside the houses (for some of them).
That's really cool! Out here in Europe we just hear how the Chinese government is demolishing traditional quarters for making roads and big buildings, so that's definitely great news.