There's an odd thing about driveways. If there are no driveways then anyone can park in any spot. (To within limits of residence parking permits, etc.)
But if there's a driveway, then no one can park in front of it, and only the owner can use the driveway. A driveway, therefore, effectively replaces a public street parking spot with a private, personal spot.
From a parking utilization standpoint, it only makes sense to allow driveways and garages if it's very likely that more than one car will park there at times when on-street parking is full. (For example, in one place I rented, we had two cars parked in the side yard and one on the driveway, and did the car shuffle when needed.)
Here's the math. http://www.drivewaytips.com/layout.html says "A single car driveway width should be 10' wide, anything less than 10 feet will be too narrow to drive or park on comfortably. 12' is often used for added comfort and assuring to get out of your vehicle without stepping on the lawn or landscape." Others confirm that 10-12 feet is pretty standard.
In many cities, no parking is allowed within 5 feet of the end of the driveway. Seattle is one, see http://www.seattle.gov/transportation/parking/drivewaymarkin... , where you'll see the 5 feet isn't from the width of the driveway proper but also includes the opening it makes when it reaches a curb.
(Other cities have smaller limits, even down to 0 feet, while others have higher, even 10 feet. 5 feet seems pretty common)
Therefore, a driveway takes about 22' of space on the curb, or perhaps a bit more.
The standard parking space for parallel parking is 24' long for standard or 21' for compact: http://www.danbury-ct.gov/filestorage/21015/21087/21123/2301... .
Effectively, each driveway takes away a public parking spot.
There's also an occupancy issue. Consider a worst-case scenario where someone lives near a park-and-ride train station, but needs to drive to work. In the morning there is a lack of parking spaces, because of people parking to commute into the city. In the evening, there's no problem to find parking. If the resident had no driveway then parking, for the most part, wouldn't be a problem because plenty of spaces are free. For the others, it means one extra spot is available.
Now, put the driveway in and the homeowner has a easier time (eg, call in sick, go to the doctor, and sometimes there's no nearby parking spot for the return), while every single day someone else has a harder time to find parking.