I think the steelman of the GP is that the red tape was not accurately predicted. Most citizens can probably agree "all else equal, we don't want a pub in the middle of a residential district open till 4am with drunkards wandering the streets". But did they also properly opening a local business should be so hard that each business effectively has a local moat, raising prices and reducing restaurant selection?
Also, the opinion that unresponsive bureaucracy needs to exist seems defeatist on the side of government regulation. Why can't we design better permitting processes that both ensure crazy pubs don't open in the middle of a suburb, and yet also make opening most normal businesses a 1-day affair?