>> [...] a lot of people don't want to give up street parking spots for garbage containers. This is an understatement. A New Yorker with a car that doesn't/can't pay the monthly indoor garage fees will fight tooth and nail for street parking.
Solutions exist[1] that provide a very large trash storage with little above ground space. [1] https://www.villiger.com/en/products#underground-systems
Burying trash receptacles rather than reusing parking spaces may be cheaper, but it isn't guaranteed. It may also vary by borough (Queens in particular has less underground infrastructure).