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I believe the traditional American solution is a "homeowners association" where some neighbourhoods strictly police the length of your lawn, other neighbourhoods don't, and you can choose when buying your home which type of neighbourhood you want.

They implement this entirely through covenants and deed restrictions, with no state involvement at all, as I understand things.

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That’s it. I live in middle of our city in an increasingly rare SFH-zoned neighborhood, one of three adjacent in our community council. Two have covenants, mine does not. Had a choice to buy in either, I chose the no-covenant one. We have a lady walking her two goats down the street periodically, one neighbor used to have an old square body pickup in side yard with a tree growing up through engine compartment (hood long gone). I like it. My friend across the way in other neighborhood tells me laughable stories of enforcement letters and such. To each their own. Choice is good - I like this approach better than city-wide laws. One of my key political principles is that laws should be as local as possible and the need skeptically examined.

Exactly. Since all member property owners voluntarily restrict their own deeds, nobody is forced to do anything. It's completely voluntary, unlike town bylaws that can oppress minorities, like those who fix cars on their own property. These bylaws are clearly subsidies, because if you'd have to bribe those who aren't disposed to agree otherwise.

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