Definitely much needed housing. The only thing I wish they did was keep the brick building that was on site. This part of chelsea is all industrial or open lots, so it has very minimal bones to work with. In these cases its good to incorporate the few good pieces there are.
When the surrounding area is inevitably built out its going to be all brand new buildings. I think they should keep whatever they can in tact so that way theres at least a little bit of history and mixed building styles when it all fills in. If not you will end up with a very bland neighborhood.