https://en.wikipedia.org/wiki/Wikipedia:Chesterton%27s_fence
"Chesterton's fence is the principle that reforms should not be made until the reasoning behind the existing state of affairs is understood."
What you've written is an all-too typical complaint of people who don't bother to understand the history of our existing legal, political and social structures. It's easy to hand wave and vent about "regulatory capture" (I do it all the time).
But go and dig down and find out why that 2+ parking space rule exists. You will find a massively more complex, and much more pro-public, pro-people, pro-progress agenda in play than anything you just wrote suggests.
I remember an example of this sort of thing that I came across in eastern WA about 20+ years ago. A small town there was facing protests because it was about to put down ("execute") several wild horses that were hanging about the town. The law was very clear about what had to be done, but the public, both in town and elsewhere in the state were aghast. The horses were healthy, beautiful and there seemed to be no good justification for killing the as the law required. People complained about the law being an ass (no pun intended) and said that this was the perfect example of government inflexibility and law making by people with selfish interests.
But all it took was a little history detour to go back and find out why the law(s) in question had come into being. It had indeed been the case that in the not too distant past (by global standards, not necessarily those of the western US), wild horses had indeed been a problem in town, and that the towns people had tried several approaches to dealing with and/or fixing the problems. None of them had been very successful, and some 80 years earlier, the town had reluctantly adopted a law where an unowned horse, if not claimed by anyone within a reasonable period of notice, must be put down.
This wasn't government inflexibility, or stupid law, or selfish interests: it was a community improvising to deal with a tricky situation, and doing so imperfectly. Improving this particular law, and others like it (such as your 2+ parking space case) isn't going to happen by assuming that the existing legal framework exists because of malintent. It's going to happen by carefully understanding the context and motivations and knowledge that led to the current laws, and only then setting out change them, hopefully for the better.