Maybe it's some limitation of the human brain that causes us to reduce everything to the same recurring roots :)
It may be better to open things up elsewhere, as long as the reason that it is elsewhere is not because elsewhere had a weaker residents association.
I've seen the paradox you mentioned a few times, but I think it is like a lot of paradoxes, interesting but rare and not very relevant most of the time.
It may be a net negative for the people on that street, but overall, I'm not so sure.