What it sounds like is the stereotypical upper-middle-class white suburban boogeyman of "Those People" that you don't want around, because they bring down property values, with a healthy helping of implied racism and explicit classism.

Furthermore, there's no reason why zoning laws couldn't be selectively adjusted and relaxed—for instance, to ensure no heavy industry goes in right in the middle of a residential area, where it's more likely to be disruptive to sleep and potentially polluting.

Acting like relaxing zoning laws to allow for corner stores and similar things will bring us to a Mad Max-style wasteland is exactly the kind of rampant NIMBYism that got us into this mess in the first place.

Broken cars, RVs, mobile homes, and animals. How did that cause such trauma?

I'd take all of that over an intrusive HOA.

How big is this community? Who decides that?

Hint: it's not Tokyo, which actually does have a fair number of old ugly poorly-maintained buildings scattered around random nice neighborhoods. Which is fine and not hurting anyone.

There's no space for people to have a horse.

There's plenty of places that I think everyone would call a "shack" made from old tin that's probably been around since the 50s or so, and is not really any different from a mobile home. So that exists here and people are generally OK with it.

People wouldn't disconnect from the sewer to do septic. That isn't a zoning issue, it's a public health one, and it's obviously illegal.

Honestly, none of the hypotheticals described have to do with zoning. Social pressure to do the right thing is a thing here, but not the only reason that things aren't super chaotic.