I know my opinion is going to be unpopular at the time of this writing, but I consider the average Western-style home to be a form of litter. They cover the landscape, are unsightly unless carefully maintained, and must be cleaned up when no longer needed.
So I consider the styrofoam house to be a step in the right direction. Sure, they’re not much good in a tornado, but the owner could just head for a shelter (and I wouldn’t want to be in anything else during an earthquake). Not only that, the entire dwelling could be replaced for the cost of repairs on today’s houses.
Of course, you can forget building high-rises out of the stuff (barring clever engineering?), so it still doesn’t solve the problem of urban sprawl. I think the final solution will be even more portable and disposable.