landuse=residential states "The extent of the area should mark the boundary of known residential use". If the boundaries are large, they should be drawn that way. A bunch of small residential areas with arbitrary boarders is only going to make the map more cluttered and confusing. The edge of the boundary should be the edge of residential use, the edge of a neighborhood, or something that isn't just adjacent to more residential use. Arbitrary is defined as "based on random choice or personal whim, rather than any reason or system". Adding a bunch of patchwork residential areas with random borders don't add any value to OSM.

Because the boundaries of them were arbitrary. According to the C&C Honolulu LUO, the whole area including UH & Punahou are a "residential area". Why not follow their boundaries?