It's also true that, if I wanted to build a nice subdivision under El Capitan in Yosemite, I would find that I'm quite unable. The collective hivemind that makes up the body politic prefers a national park over houses.
So now that we've acknowledged that Mammon isn't the only god in our pantheon, perhaps we can make better decisions on that basis, going forward.
For that specific problem, you could imagine policies allowing you some kind of 'zoning swap' - where you get a bit of land in one physical location and swap all laws, covenants, and restrictions for land in another region. Obviously you might not have a 1:1 exchange rate...
Before it was Silicon Valley, the Peninsula was said to be the best citrus growing land on Earth.
It's a nice place to live, don't get me wrong. But I can't help feeling like growing detached single-family homes instead wasn't a good trade.