Its a little mix of both. We have enough density right now in certain neighborhoods closer to downtown. Density does drop off big time once we get into the sprawling burbs. Imo, its always best to start small and expand. It worked for Salt Lake City and now its working for Charlotte.
Applying this concept to Jacksonville, I'd start by linking dense pockets (ex. Riverside, Springfield, Metro North, Durkeeville, San Marco, etc.) with downtown and major employment centers along these lines (NAS Jax, Shands Jacksonville, Swisher, Gateway, etc.), while at the same time working to increase density around the rail corridors throughout the region (ex. areas like Yulee, Green Cove Springs, etc.). Then as time goes on and the opportunity presents itself, we expand.