The spontaneity of gathering your friends to dance on the beach, use a private warehouse after hours, or host a house party that went past 2AM, was now risking police showing up and handing out fines.
Regulation is the fastest way to kill anything unique and valuable.
[EDIT: Found a report for City Council recommendations related to this. It's a dull read, but historically facinating if you were around back then. https://www.toronto.ca/legdocs/2000/agendas/council/cc/cc000... ]