If we're talking about the US, excellent public transit isn't really a thing. IMO, roughly 50% of Manhattan qualifies, and that's it.
Sure, most of the country doesn't have adequate transit. But some neighborhoods in most metros do. Cities should not be bound to parking minimums in those dense urban centers. If it turns out that transit is not good enough, then the market value of such housing will be appropriately low.
You mean, for example the Palo Alto Caltrain station? If you happen to work in another city center, that will suffice for your daily commute, but not much else. How do you get home from the casino at 2am? How do you get to your friend's house in the suburbs? How do you get to In-n-Out?
I'd consider this barely acceptable, far from excellent.
Employment is an excellent example of an activity which the government might want to facilitate with public transportation, and, as you point out, Caltrain is optimized for certain daily commutes. Late-night gambling-entertainment, on the other hand, belongs way down the list of priorities.
FAR is the ratio of floor area to lot area; it's not about parking: https://en.wikipedia.org/wiki/Floor_area_ratio
Parking minimums are certainly a problem, though, especially when they limit dense construction in places with excellent public transit.