[everforward]

Zoning laws are meant to protect ownership interest in your property (not that they're always perfect).

A totally free-market approach allows one party to reduce the use or value of another party's property. E.g. in the above, the high-rise blocks the sunlight, which will could kill any plants on the property and preclude a backyard. That combined with the lack of sunlight could dramatically diminish the value of the property. Meanwhile, the highrise increases in value because they got X extra floors that get sun.

There is absolutely utility in the sun; in the most obvious form, it can be used with solar panels to generate electricity which can be sold for cash. My neighbor shouldn't be able to build a solar array that blocks all the light that would hit my property.

Zoning laws, to me, are just a shortcut to avoid having to enumerate and manage those rights individually, per property. There's a lot of things that can contribute to the value of a property, and it would be a mess to manage them individually.