This all falls under Need vs Want. (comments in parenthesis are my usually sarcastic remarks)
in this case Want has gotten way out of proportion. Wanting a huge home...most homes here are massive compared to other countries.
When I saw a typical home in Norway, i was astounded....a 3-bedroom apartment here is massive compared to the homes i saw there. Their bedrooms are far smaller. I also think that may have to do with how little time they spend in those rooms, instead either do something in the living room, or go outside (heaven forbid if we did that!).
Then in Turkey, I stayed tehre for a summer in a 3 bedroom condo, and it was massive....well the living and dining areas were, the bedrooms were again, small. Your average 10x11 bedroom for them is a room meant for a couple.....kids/singles usually get a smaller room than that. However their living rooms were just HUGE....however I found that the people there tend to be very sociable to their neghbors, so the living rooms are often large so tehy can have lots of guests over......neighbors (in america neighbor=teh sux

)!
Oh and we cannot forget that businesses attract delinquents...like everyone else!
Seriously, whoever came up with this zoning stuff didn't think it through properly. I agree some businesses have no place in city limits, like fuel burning/nuclear powerplants, or anyhting that produces billwing clouds of toxic crap....but most businesses don't fall under that.