That sounds great, and I care enough about this that I moved somewhere with well-designed transit, but I still think it's a problematic policy. Some people might want to live in a bigger place further out, and if they're willing to make the long commute (and pay for its negative externalities, which most aren't) then I don't see why they can't.

I actually prefer to bike to work, but I doubt any employer would be willing to give me my hourly rate for that...