>Individual regulations, each reasonable in isolation...

Every single one of these rules that amounts to death by a thousand cuts preventing these sorts of businesses (as well as many others) will be rabidly defended by many/most if presented in the abstract. That sort of inability to reason about the forest based on what you're doing to the trees is the root problem. And it's a social/ideological/moral one, even if it expresses itself via governments.

It's no more "reasonable in isolation" to peddle rules than it is to justify littering in the park because they don't take effect in isolation. If everyone does it everything goes to crap and we all know it so we don't let anyone justify littering in the park using the effect in isolation.