"residential zoning" looks like an intentional misunderstanding of the problem. Putting one outside of "residential zoning" surely isn't a problem even if it robs an entire residential zone of power, right? Or then governments can't just re-allocate residential zones to industrial zones to get those juicy deals, right?

The way you're using language here is putting the problem so close to the edge that abuse, ignoring the quality of lives of residents, would seem just so logical.