Counter-counter-point: Sometimes it is about the level at which the policy is applied. It may be easier to apply it at a county level or state level, etc. It might not make sense for every single street in the county, but since many policies are enforced at a certain level (county, city, state, country) you need to match the policy to the level at which it would be enforced. Otherwise you'd have a gerrymandered law that applies on some streets and not others, which would create yet other problems.
That rule was dumb and unnecessary, but was also not a "pointless regulation", it was not "regulatory capture" by the Big Driveway Cartel, and it definitely wasn't a response to a legitimate need for more parking (again, super wide streets that sat empty). It was just a reflection of the deeply held convictions of an extraordinarily parochial population.