It would fix a lot of things like e.g. San Francisco. Imagine if all those two story, single family homes were taxed at their land value (40 story condos! condos everywhere!) where 3,000 people could live in the space currently occupied by 2 to 6 people.

Living in a place shouldn't grant you the right to obstruct progress forever just because you got there first. In the same vein, just because you got somewhere first also shouldn't mean you get unlimited profit potential just because... you got there first.