This is genuinely interesting idea. Whilst some of the housing issues in SF could be resolved removing a little red tape, they can't be done away with. We have a limited amount of space, and most everyone agrees, we don't want to be building upwards aggressively. As such, better public transport (both in terms of hours of service AND reach) offer the possibility of proper urban sprawl. Consider that living in the East Bay currently means you are essentially giving up on SF. Genuinely good public transportation options would make living further out far more feasible, and far less of a sacrifice. Can't we get the tech companies to help fund part of this?
A friend of mine has started a petition on Causes in response to the police's awful behavior during the SFBC's event to raise awareness of the dangers of cycling in SOMA.
Please get involved, it's incidents like this which do nothing to help the cause.