So many questions... How does a NIMBY protest turn into Tiananmen Square? Does someone in government actually say, "They don't want malls? THEN GIVE THEM TANKS!!!" Why would a government that has "sold out to corporations" restrict the sale of lipstick and alcohol?
Governments are groups of people that are at least partially restrained by the wills and opinions of other, much larger groups of people. People are very complex. If you are expecting the government to have rules that it follows 100% of the time, you will be disappointed.
A rule such as restricting lipstick sales is something that is mostly inconsequential that the government can still point to and say "See, we don't just blindly do what megacorps tell us to!"