What will the businesses sell? Air dropped supplies?
(Like these: http://gothamist.com/2011/07/14/post_blames_bike_lanes_for_b... http://www.villagevoice.com/news/new-east-village-bike-lanes...).
In the case of the bike lanes, this is the furthest from the truth (have a Google for lots of arguments about the merit of increased bike traffic).
I'm not sure what the solution is, but there certainly is one that would support a few car/truck free avenues.
As another commenter said, this setup is totally normal in most old European cities. Not a big deal at all.