That’s just another form of privatize the profits and socialize the losses.
Josh, owner-occupiers and long-term rentals generate very little revenue for San Diego. Many cities try to stop new residential development in favor of commercial, because at least they get sales taxes that way.
Vacation rentals however generate a ton of money from the hotel tax. A $150/night AirBNB will pay about $5500 a year in hotel taxes. And visitors also spend a lot more per day than locals, so more sales tax there too.
Flyer, for a zoning restriction to become a government taking, it needs to almost completely destroy the value of a land. They are very hard cases to win.
I agree with you that a mix of small scale commercial inside residential zones is best for people’s health, for the environment, and for long-term property values. Overall central and coastal San Diego does a good job with mixing them together. I would not like living in a suburb where there are nothing but houses and maybe a small school within a 3-mile easy walk range.