The fact you're using this as an example of public review being a good thing shows how fucked up the process is.

You're cheering for the prevention of building new housing in the most valuable, most useful part of the town. I bet it would have kept all the same retail and restaurants in the bottom too, so there would have been zero downside for anyone who actually uses the street.

Instead a bunch of people with no stake except an aesthetic preference blocked it. How on earth is that a good thing?