Well, this has nothing to do with Toronto, and even at the rate we're going not even our poorest citizens (who aren't homeless) will live in apartments this cramped. They may live in apartments or neighbourhoods that have other problems, though.
Beyond that, I thought this expose was fascinating. I've always craved big, dense cities. I think I have a higher tolerance for density and agoraphilia than the average Torontonian; there isn't a single neighbourhood in Toronto that I feel couldn't be denser, including already-dense areas like St. Jamestown or St. Lawrence. That said, when I visited Hong Kong there were areas that felt suffocatingly dense, both inside the homes and outside on the street. The TST area of Kowloon, in particular, really got to me, because everywhere you turned there was a sea of humanity - beside you, below you, above you. The feeling was similar to that of exiting a large event like a concert or a sports game, but everywhere and at every turn. And knowing that the only place where you can get privacy is back in your 200/ft2 apartment? Well, I can see how that would be maddening.