Billions of people crammed into cities, not so much.
Perhaps a combination of both ideas - let's just stabilize the population right here and now, and be smarter about it all. We wouldn't have to all live cheek-to-jowl if there were fewer of us. I agree completely that humans have done a piss-poor job of managing their 'personal' living / working space. But everyone in their own 750 sq ft apartment doesn't sound wonderful, either. I've lived in a high rise in NYC and while it had its moments, it certainly wasn't ideal for me, even though I did get to benefit from Central Park (when it was daylight and safe). I now live in about a 750 sq ft cabin on 2 acres. I'd be fine with one acre or even a half an acre, this is just where I am right now. But I don't like to be really close to lots of other people all the time. If we manage our population better, we can each have a little breathing room. And leave 75% of the land to wildlife / wild areas (and all of the oceans/lakes). Some like cities, some like it a bit quieter. It can be done, but we should really think long and hard about stabilizing the human population now.
Humans are supposed to have the brainpower to fix all of this mess we've created (wiping out 10% of wilderness in 25 years...) but we can't seem to control our greed or manage our instincts to procreate. We tout the benefits of self-control and behavior modification / management in most areas, why not limit the urge to pop out lots of kids just because the maternal or paternal instinct kicks in, or because religious or societal or even capitalist culture (people = consumers = ever-increasing profit for shareholders!) pressures people to have children?