2 interesting articles here:
http://www.greaterbuffalo.blogs.com/
Note that Olmsted and Dorsheimer chose the location exactly because it was next to the Park, and that the Park itself was purposely next to the cemetery - the intent being to combine those areas into one big tract of 'countryside', even if each had a different use.
There's nothing "dead" about the grounds, except parts with asphalt pavement. Many trees remain, lots of grass, many many birds, etc. Trees make something called "oxygen" - my lungs like that stuff. The remaining grounds can be restored easily - there's room for at least 1,000 new trees and shrubs. Condos in the old buildings, if that's possible, wouldn't stop the improvement to the grounds.
ps - yes, lots of neighborhood people use the grounds as a park, the way it was intended. It isn't huge, and should be improved, not further destroyed. Why do so many WNY people hate Nature? I'll never understand that - while NYC is constantly planting and making the smallest plots into mini-parks, too many people here want to "develop" anything that managed to escape being paved in the past.
The parks we have are so chopped-up and neglected that they hardly qualify - Delaware is mostly a barren golf course, minus the Zoo, minus the expressway, minus the Albright.