Good points Dana. I'm not nearly familiar enough with the "well to wheel" efficiency of urban building at all, though we're all aware there is potential for huge gains in the materials used, etc.
But I can envision sustainability gains from building "up" so that you can leverage solar energy, wind power, and solar heated, gravity fed gray water functionality. I'm no architect, but I think this sketch I just made and photgraphed with my phone clearly gets my point across :)

In case it's not abundantly clear in my photo-like drawing, that's the sun beating down heating the water and some solar panels (which can be placed on the sides of the building as well), there are wind turbines to advantage of the winds at higher altitudes, and gravity (represented here by some pretty nifty arrows) can carry water down where it can be used for a variety of other uses.
Anyway, all kidding aside, there are efficiency gains to be had through density, but not in the way we handle things presently. When I lived in Manhattan, every floor just has a massive garbage chute and people couldn't care any less what they throw down that thing. Looking back on it, that building was appalling in its efficiency.
Anyone have actual quality information to contribute?