That would be a valid position if all the investment into local amenities were at local level. We all pay taxes to build a light rail line, or pave the streets, or maintain the parks, or even create enough demand for shops/restaurants on the main street of a central, single family zoned neighborhood that would never generate enough demand from locals only. The entity that creates the amenities (the city, or the state) should have a say about development around these amenities.

Another aspect of this is that upzoning will still allow locals to decide... it's not magic, the buildings don't just become skyscrapers when you upzone. The locals have to have a preference to sell to the developer who would build those. All you do with zoning is allow some locals dictate to others what they do with their land, based on semi-accidental status quo.