They can build what you propose, but there is a downside: cost. A 2 story house costs more to build. Towers cost a lot of money for what you get, and are hard to insulate well. The driveway your propose actually takes up more of the lot than the one you hate (it is cheaper, but there are downsides to stone that makes most people willing to pay a lot more for something hard).

You can get the nice house you propose if you are willing to pay. However most people who build decide that pretty isn't worth paying that much extra for when a cheaper house gives them the space they want/need. When they realize that a square box with the garage out front is cheap to build but too ugly they ask was can be done and the builder offers a few features that don't cost that much extra to break things up. Which is why you see a lot of bay windows and dormers, but fewer two stories.