That is already how property tax works, except in California. I think most people agree that the California system is a disaster.
Not in Michigan (where Detroir is). The rate of increase on property taxes is capped, so if prices go up quickly your tax doesn't. It gets reset to market if you sell.
The most valuable thing you can have for retirement is a home free and clear. Incentives to disrupt that in favor of what others think is a "better use" are very un-American IMHO.
In other words, if California actually did kick out homeowners for their neighborhood getting too popular, it would have been much less of a disaster.
It was true that before Proposition 13 many older homeowners who could not keep up with rising taxes were forced to sell. But taxes were rising because house prices were rising, so they were able to sell at a nice gain.
This is essentially a relatively benign form of eminent domain, which has the same consequences without the implication of a good financial outcome.
Prop 15, a modest modification to Prop 13 that wouldn't have affected homeowners, just commercial property, failed. Removing Prop 13 protections for homeowners would be much less popular.
Maybe people in California do think the system is a disaster, but they like it and don't seem to want to change it.
Either current residents are protected from property tax increases, or property taxes can be deferred until sale or death and the estate pays them (common in many jurisdictions).
And yet it is immensely popular. Why do you think that is?
I believe it's because rather than thinking home owners are evil rent seeking capitalists, most are hard working people who bought a house and think it's fair that the government not tax them out of it.