Yes INFINITELY!
I think this simple tweak would go a long way toward solving 2 of the problems currently encountered in Glitch. 1) the economy is completely out of whack due to the enormous excess of currants in the game, and 2) many high level players seem to be bored.
If we could build our houses infinitely high (at a steeply escalating cost of course) that would certainly suck a lot of the currents out of the system. And that is before people even started getting furniture!
There would be a tremendous demand for all the resources that go into doors, walls and furniture. Perhaps there could be elevators with cables made from fiber.
I think that this would do so much to stimulate spending and give people goals to work toward.
The only downside (that I can see) to this is that it would be a relatively solitary activity. But it sounds like there are some amazing social opportunities coming soon and this would give people something to do (and something to sink currents into) in the meantime.
Aside from the elevators, this could be implemented immediately. After all, it is not like we have to worry about zoning regulations or the laws of physics.
I was also thinking that it might be amusing to allow people to skimp on building materials with the understanding that if they did so, there is a likelihood that their house would collapse, dumping everything into their back yard. Especially if they had loud crowded parties on their top floor.
I think all this would help straighten out the economy and would be a lot of fun too.