I agree. They can zone for housing. Anything that increases overall supply helps. They have mechanisms to encourage density (and affordability) too.

should cities not have entertainment venues that are welcomed by local residents?

Focusing on local residents tends to be a sum optimal. Focus on what’s best for all city residents and you avoid a lot of local maxima in favor of a global one.

Remember, people often have limited understanding of impacts focusing on a small percentage of what’s going on. Aka sound byte politics, a stadium is only half the story rarely used, low density parking can be a larger issue.