Earlier quoted context omitted.
Yes it's tempting to say that but it doesn't solve the underlying problem which is the development didn't create sufficient parking space. It didn't create because the government didn't mandate. A parking lot is not a high value salable area for a property developer and so unless he is building it for the 1% who value and pay a premium for such, there is no incentive fir him to do so. So as people become wealthier an…
But you said it yourself - the way to solve the externality is to forbid them from parking on the street. How is that so difficult? Rather than the government trying to plan the optimal amount of parking for every possible time and use and density, they can just say, "don't park on the street. Figure out your own parking requirements."
You appear to be commenting from the POV of the US or Canada where land is plentiful and people build independent houses in towns and suburbs.
In the cities I mention, owning an independent house means your wealth is in tens of millions of dollars (mere millionaires would struggle to afford independent houses). The average middle class person is very much dependent on developers constructing multi storey apartments - and it's not in their economic interests to solve for parking requirements unless compelled as I explain above.