I can still see some value to building codes and regulations, but I really don't see what benefit the very strict zoning regulations are bringing to the table.

If my neighbor and I decide to sell our land to a developer so they can build a small apartment complex we should be allowed to. If the neighbors don't like the idea of having an apartment nearby they can see if they can get in on the deal too (probably turning a tidy profit on their lot) or they can suck it. It's my land I should be able to sell it to whomever I want or build whatever I want provided the structure doesn't pose a physical risk to my neighbor or their property.