What’s wrong with it being just what it is? Presumably, it is acceptable for some place to be an aging, silver retirement community. Why not Palo Alto? Being “more” would be something different, which sounds like it’s at odds with the retirement community vibe residents enjoy.
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What's wrong with that?
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How is it harming people? What's wrong with the world having some places with more expensive and less dense housing than other places?
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The workers can live anywhere. If PA has to import labor, it just means the cost of labor will be higher, employers have to pay for the commute. It's just a trade. If PA wants lower wage employees, it'll have to build housing to reduce the cost of commute.
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Why are the choices irresponsible? Sounds like they prefer to pay the cost of their labor commuting vs paying the cost of higher density housing. Ultimately, it's outsourcing. On a larger scale, some labor is provided to Palo Alto from across the ocean. It's a market.