"It seems much more reasonable that a good hypertrophy program would help increase muscle density rather than just a powerlifting program."
Reason doesn't always dictate truth. It has been proven absolutely over time that heavy weights make harder muscles. There is no doubting this fact. Just because your muscles are bigger and fuller due to hypertrophy does NOT mean they are any harder. Look at the bloated mass freaks of today. Much of their size is due to sarcoplasmic hypertrophy, that is the plasma material in between muscle fibers. Big they are, hard they aren't. I guarantee if you were to feel a pro's muscle then feel a powerlifters muscle, you would notice a much harder muscle on the powerlifter. Size does nor ever will indicate hardness.
"saw a study on powerlifting type movements. over time, there is actually LESS fiber involvement, but the fibers that are working are very strong and maxed out for size. "
This is very true as it is the basis for strength training. Strength training works because it makes your exisiting muscle fibers more efficient, therefore you can push more weight with the same amount of muscle as you've always had. Hypertrophy training makes you stronger due to bigger muscles, though I guarantee muscle efficiency will win over time in the strength game.
The trick obviously is to do a bit of both. Make your muscles stronger and bigger to bet the best of both worlds. Train for strength first to get a good initial base. Then train for growth to make those efficient muscles bigger and even more efficient. Strength should come first as it will allow you to push more weight on a hypertrophy phase which means more stimulation for growth.
But we got off base here, the question was simply asking how to make muscle harder and I've covered it already. Lift heavier to increase resting tension. Read material from any of the well known strength coaches; Pavel, Poliquin, Chek, etc.. and you will find this info is very well known.