Earlier quoted context omitted.
Ah, I took a different take on your original post. I'll leave my original reply, as I still agree with the point, but I see where you're going with this and heartily agree. One of my main complaints with where I live is that it's a round-trip hour to walk to any store, yet $DEITY forbid that we put a corner store anywhere in my neighborhood lest a developer be prevented from plopping another house on that plot.
Agree in general - but keep in mind that $DEITY is often your neighbors. Developers generally aren't the ones pushing for restrictive zoning laws, residents are. For decades Americans have lived under the impression that businesses near homes is somehow a corrupting influence, and that putting businesses far from homes is somehow a feature and not a bug. The current suburban landscape in America is the result of both…
I think this is one of the most insightful comments here vis a vis YC's plans, and it's one of the reasons I'm in the "markets" camp. I know I'd prefer to see more mixed-use, bike/pedestrian friendly cities, but ultimately I'm wary of even my own "plans" and think the freedom to have people doing different things, and let cities evolve naturally beats even the best of plans.