At face value houses could be placed on a great course, away from the line of play, without changing the fundamental properties of the course. As a rather stark example, imagine condos/houses on the perimeter of the Sand Hills (!?!?) Truly, the course itself would not have changed. Routing, shot values, etc. would be identical.
Yet, to probably everyone on this board, golf is more than just 190y from a sidehill lie to a draw pin. The spiritual feeling one gets when playing a truly great course in all of its natural surrounds changes immeasurably when native grasses and natural terrain are interrupted by aluminum siding and asphalt shingles - especially when said eyesores are on both sides of the fairway. I would argue that it is precisely the natural setting that makes the experience of playing a well-designed course "world class." IMHO, Ben's Porch is the absolutely perfect halfway house for the Sand Hills. Small and modest.
Can you name a course you *really* enjoy playing which is lined with houses? This is especially difficult for a links. And even for wooded courses, only Pinehurst #2 leaps to mind (where the houses are really only on a first few holes and are pretty hidden from the tee).
There is a "strategic" house at the Wilds (Weiskopf/Morrish) in suburban Minneapolis. Pre-housing, one could play an aggressive line from the first tee, cutting significant yardage off of this dogleg right par 4. I came back two years later and houses were built along the inside of the dogleg right up to the first tee. The house closest to the tee - just wee push off the tee, had a broken side window and numerous pock marks from being repeatedly hammered by wayward drives. Clearly, many had gambled and lost (or did not warm up). It must be quite a sound to be inside your aluminum-clad house when a drive from 20y away hits home.
OT - have you ever noticed how several of the great links courses have a trailer park or similar housing complex in plain view from the course (County Down, Portrush, Dornoch,...) ?