Most new development in the US look terrible indeed. I’d rather get overprotection than those buildings everywhere in my city.
Preventing people from being able to afford a place to live so entrenched interests can accrue hundreds of thousands of dollars of investment appreciation is not a “win”.
Even if you think that the interests of long term “locals” should be privileged (which I disagree with, all men are created equal yada yada), rising property prices don’t benefit all locals, just “local property owners”, as you’ve observed. Local renters and even the kids of local homeowners who eventually want to enter the property market themselves are hurt by constrained supply.