The people who live within 500' of you do not have exclusive control over what happens in that 500' radius circle. Control is ceded to entities like your town, or county, or state, or federal government, in no particular way. The federal government controls, for example, what happens in the air above where you live; your state probably controls the building code for where you live; your town likely controls where you can take a dog for a walk or the intensity of outdoor lighting.

There's no smooth gradient of control dropping off as you get further from where you live. It's messy and it's complicated.

In addition, your stated view of who should have control also acts as a major barrier to people who do not live in a place from ever doing so. I suspect you may have no problem with that, but it's not technically "the American way" (aspirationally, anyway).