Rise in home-based businesses test neighborliness

The Wall Street Journal notes the large number of people going into home-based businesses as a result of the recession. Home-based businesses are often the source for start-ups, though few of them make it to a substantial level. But as WSJ notes, the rise of such businesses takes on other issues, such as city codes and of course regulations imposed by neighborhood associations. Is this the time for cities to revisit their codes and encourage more home-based businesses even after the end of the recession?