Neighborhoods and communities are real things. Noise, dogs, trees, etc. don't respect property lines or zoning regulations. That's the sense in which fractional ownership exists: when you are my neighbor, you necessarily invade my space. But good neighbors look out for each other.

"Everyone should maximize the income from their property up to the limit of law" is a recipe for for having no neighborhoods or communities. It's the usual fallacy of treating people as fungible commodities.

HOAs are terrible, they are inevitably staffed with busybodies. We can agree on that!

I think that’s pretense. Homeowners use zoning primarily to protect property values, not build up communities. The suburb where I live now is incredibly neighborly. There’s also a bar within walking distance and a little corner store. Part of the reason is that lots are tiny (about 1/12 of an acre) and there are few cul de sacs so you actually see people walking their dogs, etc. Today, parking, lot size, traffic management, and other regulations would make it illegal to build something like our neighborhood. The minimum lot size is like 1/4 of an acre in our county! You’re basically obligated to build suburban hellscapes where you can’t even go to a neighbor’s house without getting in a car.