I returned from a trip to South Dakota earlier this month, visiting a friend. I flew into Minneapolis and we spent a few days there at both the beginning and end of my trip. I gotta say, Minneapolis' downtown is remarkably urban and very active. We went out in the warehouse district I believe it was, along Hennepin Avenue, and I was floored by the amount of people and the lively atmosphere. I definitely think that Minneapolis could sustain a lot more residential development, and as you said kenratboy, I hope this project is only the first of several proposals yet to come.
Sidenote: Target Field is stunning.