Human beings have lived for tens of thousands of years in communities where the work was "being alive" and the large task was "being human." People in medieval villages had friends and loved ones in spite of being illiterate and only having subsistence skills.
If anything, hyper-specialized labor and the divorcing of geographic proximity from the tasks people undertake have been undermining this traditional modality of living. I would anticipate in the absence of those pressures it might very well come back.
I might agree that it's possible the pressure to form cities goes down, though the author seems guilty of the Singularity thinking of just assuming the super-smart AI magically solves the logistics, transportation, and energy challenges in a way that distributes people... Not impossible, but I think a bit unlikely. If it happens though, there would be advantages... Cities are relative hotbeds of human-transmitted disease, even with modern hygiene and vaccination, and spreading us out a bit could actually make us healthier on average (... maybe. Unless the magic AI doesn't actually solve the logistics issue and non-proximity to a population center implies lack of access to resources or the skilled hands of people the robots haven't replaced yet).