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I feel that if done properly the results can be very positive. It always helps having a real-world example of anything you're trying to accomplish. Having that be a local neighborhood helps that much more if you're pushing a city-wide or region-wide initiative. I myself can't wait to see the results by the end of the year or beginning of next, and only hope for continued growth once this gets under way.
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I just read about an initiative going on right now called 'Greening America's Capitals.' It's a project of the Partnership for Sustainable Communities, which is composed of the Environmental Protection Agency (EPA), the U.S. Department of Housing and Urban Development (HUD), and the U.S. Department of Transportation (DOT). This program helps state capitals implement their visions of environmentally friendly neighborhoods complete with green building and design strategies. This is definitely something we fully support here!