Meanwhile, blue states have a "worst of both worlds" kind of policy. They don't permit much sprawl, and also don't permit much density, thereby pushing people to states where they do permit sprawl. Then they tell you that this is good for the environment, somehow.

That said, while it makes for cheap single family homes, sprawl has a LOT of negatives. Strong Towns explains how it basically functions like a Ponzi scheme in the long term, and within older cities the sprawlier parts are usually subsidized by the denser ones. There's also more cost to the environment, to health, to noise, to safety, and for transportation costs for both the government and the user. There's a reason the US has an unusually high traffic fatality rate per 100k people for a developed country, and there's an impact on our collective national waistline as well.