I'm not from NYC or even the US, why wouldn't you just use bins that the bags go in? I don't understand, please help me understand this. I'm thoroughly confused.
I'm willing to bet landlords don't want to make these investments to their properties in nyc, and have more of a voice in local government than their tenants, who are probably mostly indifferent about the issue at this point anyhow.
The issue is the collection point, not the storage prior.
The sidewalks are plenty wide for that, nyc doesn't even come close to how narrow some european cities without such problems are.
https://www.bing.com/images/search?q=new+york+trash
Most cities in the USA have either individual trash cans (suburbs/low density, once a week): https://www.youtube.com/watch?v=UluH0QmnwfM (ONE HOUR???) or dumpsters/dedicated crushers (high density, can be once a day): https://www.youtube.com/watch?v=XDTrUs6TeNc