That means local shops can pop up, and city centers are able to progressively transition upwards at the edges (and plots can be upzoned) instead of having a sea of low-density housing suddenly becoming a bunch of skyscrapers.
In a nuisance basis zoning system, an area would not be zoned like that, a business would only be forbidden if it exceeded the nuisance level for the zone.
So in most areas, small stores and restaurants are allowed, because they are low-nuisance businesses. Even in very low nuisance areas, businesses traditionally run out of homes (e.g. very small offices, some forms of medical services, small shops, very small convenience stores / corner shops) could not be forbidden.
Commercial zoning would be for "disruptive" commerces due to traffic, noise, space requirements, sight, ...
1. "NIMBY" is a Redditism for people who are apparently obsessed with the value of their property and do not allow dense residential construction only because the value of their property will plummet due to increased supply (no nuisance concerns are accepted).
2. The very same "NIMBY" do not allow commercial construction because it decreases residential supply and increases value of their property (which they are obsessed with, see #1), no nuisance concerns are accepted.
Did I get it right?
You do.
> Did I get it right?
No. Neither of your assertions is relevant to a nuisance-based zoning system. That is the point. They're only possible in an exclusionary zoning system, where plots have to be rezoned in order to have any sort of varied activity.
You can rent the offices really really cheap.