If an HOA mandates single-family dwellings and large set-backs, then it should be directly responsible for road maintenance, sanitation, fire, etc. If you want all those long roads, you have to pay for them.

The way it works now is that a developer drops in an HOA with a restrictive covenant, then turns the mess over to the nearest city to maintain a bunch of excessive infrastructure.

If an HOA can't be maintained (bankruptcy) then the covenant should be automatically dissolved and the easements lifted.