Yes, pity to have given up such a promising path. I'd find the very small windows oppressive, but as one can see, this has been improved in later designs.
Of course single-family houses in urban areas are extremely environmentally wasteful in other ways, but this is a prototype.
I'm also surprised at the 30-storey tower in Austria - Very tall buildings have a high environmental cost as well, because almost all inhabitants will be using the lifts, and there is pumping water, complex sewage disposal etc. Usually row buildings a few storeys high are seen as the most earth-friendly design.
Fortunately sound insulation has improved a lot - the apartments in the co-op that were utterly rebuilt are up to sound code, and you can't hear the neighbours at all - wish that were the case here, although I don't have noisy neighbours.
There is a new project near here, Quartier 54 (affordable condos, co-ops, a non-profit-housing building for seniors) that doesn't quite meet Passiv standards but which has been built according to ecological, energy-conserving guidelines. http://www.quartier54.com/