I agree with the sentiment of vastly deregulating urban zoning conditions. However there are a couple of places where the market forces will lead to poor long-term community development. For example, outside of urban areas the market tends to incentivize suburban sprawl. In Toronto, you can see this in the GTA region like Markham or Brampton: vast tracts of cookie-cutter residential neighborhoods, without any consideration for integration with mixed use. Zoning does compound this, with density limitations, and parking requirements. However, the developers are perfectly happy with the high return on investment they can get building cheap single-family houses.

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