People think it will disrupt their neighborhood, when the people are asked, they almost always object. I was surprised to see one turned down here in our little town a while back. The neighbors simply said "Not in our neighborhood" and it was a done deal..
It's funny, because if well run it should actually increase the value of the properties because B&Bs are the FIRST people to notice any changes in the neighbourhood, things that need to be cleaned, etc.
On the street where we used to live, we were the first to call the city if they didn't pick up the garbage, a car was parked for too longer or someone was doing something else illegal.
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