This is in the context of not knowing the entity behind the application, and evaluating it on its merits alone. I'm not convinced that's a bad thing. Kindof like evaluating a resume without knowing the name or gender of the applicant.

Cities are bound by laws, and not complying opens them up to lawsuits which the taxpayers pay for. Sure, maybe that's in the best interest of the community in some cases. However, I think it usually happens because people have feelings and biases rather than as a calculated move.