Yes SF is apparently wildly corrupt. There's an ongoing FBI probe which seems to show that a wide swath of top level city public works employees have been involved in some sort of corruption scandal. The latest revelation is about the former mayor Ed Lee who died last year. Follow the links in the article for all the tentacles in this farce.
Assessing through the lens of strictly zoning laws, I don't think they've done anything wrong. If we (as a society) say zoning is controlled by local governments, and not the state government, then they are free to vote in people that pass (what I view) as draconian zoning policy.
My criticism of zoning is, historically, it has been used to keep certain groups of people out of certain geographic areas.
