> The downside is that evaluating potential versus using sales history or economic revenue is inherently subjective and ultimately disrespects property rights. Ultimately, why should the owner of a vacant lot be compelled to sell or develop on the basis of the potential value?

Property rights are important, but they aren't the end-all-be-all. Eminent domain, blight laws, zoning laws, tenant rights, and a variety of other property-related laws arguably disrespect property rights, but they have been a staple for hundreds of years. Property rights were never some sacred ground.