18.00 BST Update:
Tim Leunig's main points have been summarised for a piece on the Guardian's "Comment is Free" page (http://www.guardian.co.uk/commentisfree/2008/aug/13/regeneration.conservatives ).
The response? Put it this way, if it were a boxing match, the referee would have stepped in long ago. Dim Tim was interviewed on the Phillips Phone-In on BBC Radio Merseyside earlier. He sounds just like the sheltered, immature upper class prat I immediately suspected him to be.