A few thoughts:
Good idea. Add in rules that remove parking requirements completely + no new residential on-street permits we got ourselves a decent policy. Also charge more than 0 dollars for on-street residential parking permits (the first 2 are free; it's only $50 / year for the 3rd and subsequent vehicles in a household). It's amazing to me that we have decided that renting out ~400-600sqft (2 cars-ish) of public right-of-way space for 0 dollars a year is reasonable. And that's only in the permitted neighbourhoods!
If a developer thinks they can make a go of it with no parking, they should be able to. Just control for the design and public realm ramifications (no/minimal surface parking, structured has have a percentage that's convertable to other uses, high-quality screening etc.)
The statement "I never go there anymore, it's too crowded and there is no where to park" is usually a sign that you have succeeded.