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If the developers, that attempt this, all go bankrupt, it does not help at all. If you want to push private companies into doing something unprofitable, you need to subsidize it or the government to do it on its own. For some of these buildings its cheaper to just build a new apartment complex instead of retrofitting them.
A while back someone in the know said how it could be done at a reasonable cost: each floor has small apartments built on the outside walls (one bedroom, two bedroom and family units ... possibly different floors for each) with the interior centre section as a common space with a large kitchen, rec room, small kids area, etc. Bathrooms should already be on each floor, just need to tie in showers (and add more stalls if required).
There are towers doing this in a few areas, but the naysayers yell loudly when riled.
Would still be nicer to have sunlight for the communal areas, but that sounds like a working solution. Probably profit goes into the drain though, because you get less units you can rent out and people will pay less for apartments with only a shared bathroom and kitchen.
If it's a choice between not having a place to live or apartments like that, which would you choose?
I mean Canada is accepting refugees who end up on the streets because there's no housing for them!