The construction you quote is correct, and generally means a surprisingly unvarying situation, typically (but not always) with a negative connotation. ‘Dreariness and yet more dreariness’ would mean that once you have (presumably reluctantly) done the dreary thing, assuming that change will then come, it is actually followed by another dreary thing. And another. And another.
The first mention of X identifies the experience of identifying what X is. Then, ‘and yet more X’ describes the realisation that X now seems to be unending, perhaps in a self-perpetuating cycle.
In this context, ‘yet more’ is equivalent to ‘even more’ but with a mildly dramatic air. Something happened, which was unexpected enough in itself. And then, however improbably, even more of the same just carried on happening.
The sense certainly can be positive, indicating unexpected delight: ‘I couldn’t believe it as friends and yet more friends flooded through the door.’ Most often, however, this construction is used to suggest exasperation with a condition that you would expect (and perhaps prefer) to change in some way.
In your example, then, the writer is saying that whenever you think you must now have seen the realistic extent of urban sprawl (which the passage implies was undesirable in the first place), actually you discover that there is yet more sprawl to come.
This, then, is slightly different from ‘more and yet more [something-or-other]’, which would be a perfectly OK description of something simply proliferating. The passage that you quote focuses more dramatically on the specific thing that apparently won’t stop.
If I were to rewrite ‘The Sorcerer’s Apprentice’ (the Disney version) I might say, ‘Brooms and yet more brooms trooped in, carrying buckets of water.’ ‘More and more brooms’ just suggests a multitude of things. ‘Brooms and yet more brooms’ emphasises the fact that I didn’t really want unstoppable brooms to begin with.