> And this is why the local community absolutely should not have any more say about a new development than a hypothetical someone who would like to live there, but can't, because there is no available housing.
If you start giving "hypothetical people" a say, you stop having democracy. You can invent as many hypothetical people as you want to force any outcome.
And real democracy requires local control. A distant democratically-elected government making centralized decisions may just as well be replaced by a tyrant, given how unresponsive it will be to your concerns.
The "hypothetical people" are in actuality all the other voters in your country. Lots of people are "pro-development, just anti-development near themselves".
Do you think that the Japanese system where permitting is centralized away from local government antidemocratic?