Honestly I avoid planning dinners or nights out in areas where it's going to be a pain in the ass to park more and more, so I at least get the sentiment. I'm assuming the thinking is that if you live in a condo in the inner city you likely either have no car at all (surprising how many people in their early 20s now seem to fall into this category) or one at most.
It's a weird conflict where yes, the city wants density and this works against that, but also the city wants fewer cars on the road, especially in the inner city... I suspect they're assuming that over a 5 year time frame this will impact people's transportation choices?
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