I think the lesson here is that 500 people per square mile is a very unnatural density- the largest-lot subdivisions will be higher, anything purely rural (even including hamlets, and in wet climates) will be lower. You need a hodgepodge to hit that mark.
If you get fine-grained enough, down to the block, 500 people per square mile is too low I think. But at a township level it's more defensible.
Yeah, that seems about right. I probably overstated things a bit earlier, now that I see the kind of areas you're discussing.