This is interesting and merely an example of what is happening everywhere. I see it as a ‘local politician’ thing, trying to curry favour with local residents, or responding to local pressure groups (that can be quite effective).
This results in the principle that local residents own not only their properties, but also (effectively) the streets in front of their properties and are therefore entitled to priority access to those streets (i.e. for parking their cars) instead of being expected to park their cars on their own designated personal property, and otherwise public property is actually “public”. So the politicians introduce these special rules for the public streets. It doesn’t matter whether other entities that pay for street construction and maintenance – the local businesses, public utilities such as hospitals, and so on – have a certain moral need of those parking spaces too.
I would assume that Deep Cove Kayaking will suffer from this proposal too. And the restaurants and other local services. And other simple users such as hikers, kayakers and other park users.
Someone should represent those other people at council. Hard to reverse these policies however. And the downstream effects will likely be harmful to many.