> The problem comes when you start to think about how there's a very finite amount of physical space.
It's not finite in a practical sense, especially if you are a space faring civilization. Certain space is treasured and in demand, but space usage overall comes down to how well you can utilize it (how tall your buildings can be), and how you access it. And in Star Trek, they have transporter, allowing people to live everywhere and still visiting most places casually for breakfast.
Even today, humankind on earth is not going out of space. Instead, we have problems with finding places which are easier to utilize for the majority, or which are popular for cultural reasons. But the first one is no problem in Star Trek, and the second one seems to have reached a peaceful solution.
> Questions like who decided that he should have that property for his restaurant vs anyone else who wanted to do something with it just never come up.
Who decides today that someone should have a certain space? And I'm not talking about money, welfare-projects exists today too. Every society has their organization, why should this different just because they have no money by our understanding?
And why do you think it's a privilege for Sisko to open a restaurant that others have not? I would think everyone can open a restaurant if they wish, but they simply do not wish to do this if they have no monetary stress doing it. At the end, a restaurant is hard work, not everyone is willing to put up with this.