> But yay, democracy? We can do anything as long as no one is subjectivly harmed.

Prospective residents and transit riders are harmed.

Rules and hearings overwhelmingly favor existing residents. If an existing resident opposes construction nearby due to noise, traffic, etc., the city will probably grant his wish. Because that piece of land is off limits for denser housing, now prospective residents face a smaller housing supply, higher prices, and longer commutes.