The netcraft secure survey in 2013 indicated an increase of over 3 times the number of websites it reported in 2010. It has tripled since 2010, 3 years ago.
Yes, I would support the denial because rules and regulations apply to everyone, and that includes businesses. Zoning rules exist in real estate to make sure that some areas or neighborhoods are used for certain specific purposes, e.g. residential areas, industrial areas or commercial areas. If those rules regulations didn't exist, it would be a complete mess and anyone could just set a factory besides a condo or a school. Either everyone follows the rules or no one does.