The blocks are small to extract the maximum $$$ from the development.
Town planners approve as the council extracts more per square km in rates and to meet the long term planning for future population growth/urban sprawl.
IMO the new subdivisions don't plan for multiple housing tenants sharing the one home, there's no room for all their vehicles. In the end the streets fill with vehicles as the car port is turned into another bedroom or filled with boys toys.
