Here is the thing. Land development must balance several, often conflicting, issues.
1) Popular opinion.
2) State and local law.
3) Private property rights.
Public opinion often is opposed to any land development, but that conflicts with personal property rights. Planning and Zoning and city councils have to consider both.
Some cities will try to mandate only large lots with expensive homes, but state law requires that a minimum percent of housing stock be 'affordable'.
There is one of the conflicts between popular opinion and the law.
And zoning laws that are already in place must be allowed even if future uses or ideas for an area change (you cannot force a zoning change on a landowner.)
Nor can you legally deny a development or land use that is allowed by the zoning that is in place.
These protect private property rights.
Popular opinion also often conflicts with itself. People want to limit development and have what is developed be large, open lots with nice homes, but also complains about high costs of houses and lack of availability.
Now, that said, does corruption happen? Of course just as it does in any time humans are involved. And yes, in small towns favoritism to family and friends is probably the biggest form. But to claim that developments are generally allowed because of under the table payoffs to city councils etc. is simply not true.
