Besides those flaws you pointed out, it's simply wrong to state that this one exception will cause everything to fall apart and revert to the old process where regional council voted on everything. The HbD process remains available to all developers and if they can make their developments work within that framework they can take advantage of the quicker and more predictable approval process. For other developers it is only fair that they have some sort of recourse. The idea that height limits are being forced on developers for their own good is ridiculous but not surprising.
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Why is it ok to do this to all developers, which is implicitly what we're doing now?
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Many people in Halifax have an overly paternalistic view of the government as an institution that basically runs the whole show and must grant permission for just about anything. They believe that just about any private action should be subject to public approval. Add to that an odd sense that developers and profit are a little bit sketchy morally and you get the classic passive-aggressive "why should we let you build here?" attitude.