You’ll see things like the “Sunday Farmers Market” that closes a block of a street somewhere because temporary event permits are much easier to get and harder to block, but the kind of semi-permanent marketplace described in the article remains rare.
And he’s right, cities don’t have a lot of incentive to try and make space for these sorts of entry level incubator environments because in most cases they can’t skim any tax off it - the underlying property is still just a parking lot and they usually can’t reassess the value for impermanent activities happening on top.