I also abhor zoning and what it does to cities. But look at Japanese cities to see what good, minimal zoning can achieve, without prohibitive height limits, nonexclusive zoning etc.
More on Japanese zoning: http://urbankchoze.blogspot.ca/2014/04/japanese-zoning.html
Persuade people to want mixed use, rather than trying to force it down the throats of home owners, and you will have much better results.
Developers are perfectly happy to deliver want buyers want. If you want better cities, have a population of people who want better cities. If the city you live in is not good enough, first try persuading your peers, and if that does not work, go somewhere more like minded.
It is not an excuse to cripple everyone in this trap of zoning and regulation that has stunted growth in almost every sector across the entire country.
I didn't blame the market for anything. You have reading comprehension issues. Fix that.
The problem is that development is so tightly restricted in most areas, that new residents have few options.
In short, you are blaming the market for the results of zoning and land use restrictions.