Actually, that photo is a little misleading. Sure, there are some tall buildings in Tokyo, but for a city that size the number of skyscraper class buildings is actually quite low. Tokyo is more an endless sprawl of lowrises and single family dwellings.
It doesn't matter if the percentage of skyscrapers is low, the point is that a large number of them has been built in absolute terms while strictly complying with earthquake regulations. That is, it is entirely possible to safely build skyscrapers in an earthquake zone.
There are a variety of other reasons for Tokyo's urban sprawl, not least the presence of what is the world's most comprehensive public transportation system.
I completely agree with you. My point was more along the lines of: don't look at Tokyo as an example of building upwards in an earthquake-prone zone to combat housing shortages. Tokyo has sprawled, and built said public transportation network to deal with it.
