I hate to be the skeptic, but I doubt this would work. There are plenty of pleasant communities to live in that are high density. They are also quite expensive, because lots of people want to live there. There's nothing at all unique about Mustachians wanting to have walkable/bikeable neighborhoods.
Likely result? Gun to my head, I'd say it'd either become overrun with yuppies who bid up prices to crazy levels. Either that or you need some sort of handicap that makes it utterly unappealing, like banning cars entirely, or having no transportation connection to other major cities, or underfunding all sorts of public services (I imagine the least being the most likely to happen).
Personally I wouldn't mind living in a city, but I've looked into cities across the nation and the public schools are all ranked considerably worse than public schools in the higher income suburbs around said schools. I think I found one school district in Lincoln, NE that looked appealing. But then you're living in Nebraska.