>And yet, I know of no malls that ever gained residence areas within walking distance

How is that even possible?

Here in the Greater Toronto Area, practically every large mall has at least a few high rises. Some malls are even constructing residential units directly on top of the mall. Even a larger strip mall will generally have some medium sized apartment buildings nearby.

Downtown Mississauga has dozens of high rises up now right next to its biggest mall. Those buildings have completely changed the city's skyline.