I still think small buildings like that would be the best way to redevelop the Wharf Street parking lots. They just need to be designed in such a way that the rooftops serve as spacious decks extending seamlessly from the Wharf Street sidewalks. Some on-site parking should be preserved but hidden under the decks against the Wharf Street wall.
Purists might complain that a sensitive redevelopment of the Wharf Street properties should necessarily involve a few stories of construction above street level as per the format of the old buildings that used to be there, but I'm assuming modern Victorians will put a priority on views from the street (because modern Victorians always put a priority on what you can see from your car as you're driving around, rather than on what you can see while walking around on foot).