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A much easier solution is to dedicate a space on each block to deliveries only, and make parking a car in it a massive fine/immediate license suspension.

>Part of the problem is a lack of alleys, so delivery trucks have to park in the street and block traffic.

There are walled-off backyards and "gardens" within big blocks. Just make them open

Courtyards are largest where alleyways would be least needed, on residential blocks.

For most blocks where unloading is a problem, courtyards are narrow, uneven spaces that frequently do not run the length of the 'interior' block.

The city would also have to justify reclaiming two lots per block—on either end of the courtyard/alleyway—in a city which already has a housing shortage.

Where's the space for that?

It comes out of the building footprint. Building owners won't be happy, but everyone else would.