Think of this as more like an area permanently deeded for a certain kind of activity, with the existing belief (encoded into law) being that permanent living there is in conflict with that activity.
I think it's fine to argue that this belief is wrong, and that living permanently in the structure that is permitted to be on the allotment is just fine. I might even agree with you.
But in general, it also seems fine to me that communities can mark out certain places as being for only a specific set of activities, and exclude others from taking place there.