I'm also of the opinion that rental renovations are totally cool if you're planning to stay somewhat long term. I also know in high rental markets there are plenty of people with rent control who do major renovations! When I lived in LA, I heard of people in areas with awesome rent control, like Santa Monica, who had been in places for 15-20 years, and were paying, like, $650 for a 1 bedroom with a market value of over $2000. So hey, why not put in hardwood floors or granite if you want it?
Plus, I'm sure your landlord loves you if you're making awesome improvements like that!