Only well off suburban/urban communities the resources to justify mediating disputes to the tune of "my neighbor's hobbies look/sound/smell offensive". If you want freedom to do what you want on your own property you need your neighbors to either have bigger problems or be far enough away to not care. Those places don't generally have good schools or aren't within commuting distance of lots of good jobs. There's tradeoffs to every approach.
It all comes down to being reasonable and in middle upper class suburbia the Overton window of what is reasonable has moved to favor the complainers over the people who want to go about their lives to the point where those places have seen fit to legislate (or enforce via HOA) what is "reasonable" and that inevitably turns into a race to the bottom.
I live in a neighborhood that very closely fits the definition of upper middle class suburbia, and the power balance is most assuredly not in favor of complainers. Quite the opposite in fact.
I also think you do a disservice to this discussion by suggesting it is just innocent people going about their lives that are being held back by the evil complainers. From my perspective it is the assholes driving their damn two-cycle quads up and down the street for hours every morning where there's more than half an inch of snow on the ground. These folks are not going about their lives, they are entertaining themselves at the neighborhood's expense.
I detest HOAs but a well-run community benefits from a collective agreement on what constitutes 'reasonable'.
A large part of us moving out of the suburbs and somewhere rural was the adjacent retired neighbors always being in our business. I'm all for being a considerate neighbor but there's little substitute for a lot of space between you and your neighbor.
HOAs make what's on your side of your fence potentially someone else's business again.
(And they frequently ban chain-link fences, even when they are a cheap, effective, and durable way to put up a fence that won't be popping rusty deck screws out of the slats in three years (or less!) and letting the dogs escape.)
(FWIW I have no issues with paying taxes but annoying to have to pay to fix something existing that's broken).
I agree that more space is better. Once my kids are out of school (which is within walking distance currently) we will move farther out of town. Mostly because I get tired of listening to my neighbors' hobbies ;-)
Which is why we have officials with letterheads to mediate.
Basically anywhere that was incorporated back when they were still burning witches is going to be downright terrible. Of the areas that were developed later some were not blind to the mistakes of the past and these tend to be pretty good. My own town's bylaws are pretty libertarian. They even enumerate the right of the self employed to run a business out of their own home (so long as you don't park too many commercial vehicles over 26k in a residential zone) and are sprinkled with all sorts of great language that limits the government's ability to control the individual. It's almost as good as not living in MA.
That said, while the legal and procedural side of things may be ok, the cultural side is not that great. MA (in my anecdotal experience) is light years behind northern New England when it comes to cultural respect for property rights. Being that busybody who calls the cops because the neighbor's kid won't stop yelling or reports your neighbor's non-permitted driveway repaving to the town is far more tolerated in MA. That kind of stuff is not considered socially acceptable in northern New England for the most part.