Every plan should be on the table to provide more safe, affordable, community-oriented housing than is available today. Artificial light and ventilation in bedrooms are routine (e.g., every skyscraper in the winter) and should not have been a dealbreaker, especially if this is one choice out of many for the students.
"Imagine taking out much smaller student loans, to live in a space with vastly improved common areas, and having your own isolated space to sleep instead of having to share it with 1-2 others."
To be clear, I think the building is awful and fails at most of its stated goals, but I think the goals themselves were solid.