I was born, raised, lived in dense cities. I've lived in semi-suburban life as well. Unless you're into some hobbies that requires such tools, you just never use it? And when you have to... you just use it? I live in an apartment building in a city, and once a month or so, during daytime, people use tools and it's no biggie.
To each their own though. I definitely grew to understand that if someone was raised in rural or suburban life, it would be extremely hard to adjust to hardcore city life, and vice versa. But I don't think we should be blocking build ups for one, if there's demand.
We just bought a place in a dense area of The Hague, and I run a table saw + shop vac frequently as we renovate. No complaints yet, just keep my hours between 10-6. Lots of other neighbors doing similar stuff too.
There are lots of benefits to density. Our grocery store and day care are less than ten minutes away on foot, because there's a ton of people so we can support these kinds of businesses (also weed, hair salons, bars, cafes, boutiques, secondhand stores, restaurants, play cafes, etc etc.)
You can't really run power tools in dense housing, correct? Or fix stuff yourself? Sounds awful.