My reaction to this information is, anyone is welcome to build a city. I don't think the government should block you from it. I'll even pay part of my salary to keep you there.
But do not come looking to me to adopt your way of life. Furthermore, if that means that you in turn shut off my sewer and electric and police and etc, I have absolutely no problem with that.
Thanks to technology, it has never been easier for me to have my own self contained sewer, my own solar panels, my own well/water delivery.
Yes you can say these things are inefficient, but as always life is a spectrum. Does your apartment have its own heat producing unit? Why aren't you using the soviet style centralized heat system that heats the whole town? They don't even have thermostats-- just open a window!
Trust me, I don't want any of your hand outs, I'm sorry I receive them at all. And I'm sorry that SFH people mess up your zoning on purpose playing dirty politics games. I don't support any of that, and I'm happy to let my house drop in value. But my land is my land, and anything one inch outside of that is not.