> Parking requirements are there to prevent businesses subsidizing themselves by snapping up all the free street parking.

This really shouldn't be a suprise, but the "market forces" solution would involve charging for street parking. That works perfectly fine.

> The reason you don't have a corner store is your neighbors don't want it.

You're sort-of right, but the reality is that walkable & dense mixed use neighborhoods are in high demand in North America, that's why they're so filthy expensive. Ultimately, this needs to get handled by local politics. People need to be able to talk about what they want their spaces to look like and go out and vote.