Because when they work as intended they arent evil, you only hear about the horror stories.
My parents had a hoarder move in on the corner of their culdesac, HOAs arent a thing here and when my parents sold their house their agent told them "that house just cost you $50,000" theres a really nice guy who lives in a really nice suburban neighbourhood where I work who has a neighbour who has 3 half disassembled cars in his front yard with the grass up to the door handles and disintegrating xmas decorations from 4 years ago all over his house. HOAs go too far alot but they also do stop one asshole from destroying everyone elses property values.
Haven't there been studies done that showed that home estimation is not a science and race of the occupation is the single biggest factor? Because if so your entire argument depends on bad data.