Businesses don't just disappear because they weren't good enough. If you really believe that, then I assume you think we should replace them all with Wal-Marts? There are LOTS of factors that affect businesses and their survival. The private, local businesses always have a much tougher go of it.
As for the small retailers being greedy... they lease space, they rarely own the space. Retailers are not the ones selling their space to developers, but rather the owners of the buildings they operate from do. So you are entirely off-base in your evaluation of that process.
Also, those NIMBY's? Huge part of the democratic process's best asset. That people from the public are able to give their opinion and challenge developers, whose only goal is to make money. If you think the developer has any other goals remotely close in importance to "make a huge profit", you are joking yourself.
1) you are wrong about Walmart. Walmart only caters to price sensitive consumers with mediocre and homogeneous products. People including you and me have all kinds of demand Walmart etc cannot meet.
Why would a small business fail if they sell products Walmart etc doesn't, and something unique and better? People will buy. Don't forget Apple's products always charge a high premium but many consumers still are willing to pay for them, instead of cheaper Huawai cellphones.
On the other hand, if a small retailer sells nothing other than what big chains already sells, just more expensive, what's the point of their existence? When we talk about small retailers, many seem to think they are all independent stores selling interesting products. They aren't. The vast majority of them simply sell equally homogeneous products at a huge premium. I am not sad to see them gone.
2) yes, it is the owner who is selling. But why? because the renters didn't make enough cash flow to justify the location and therefore afford the high rent in such locations. It is the market force, play by the rules. Money always goes to where the profit is, it will NEVER change.
3) I don't deny many residents sincerely care about the future of the entire city, however, more only care about "how does it impact ME" and are unwilling to give up anything for the progress of the city. For example, they would rather have a 2 storey shack or a parking lot in front of their building, rather than any decent building, because it will block their view.
