You are wrong, this ruling means that if a developer wants to tare down your house to build and sell a nicer house he can do it if he can get city hall to go along. This ruling kills deader then a door nail private property, the government know has total control over all property in the usa. You have zero property rights, zero. You own nothing, you control nothing, piss city hall off and you are gone.
Nothing new. Local authority (is that the government?) has always had gread control in this regard and were not as limited as are the feds. Control of the local government is extremely important in stopping these injustices.
The issue here is whether the fedgov has the authority to stop the locals. Given that initially the BoR did not cover the states that issue would have never surfaced until after the Civil War.
This is not an example of the fedgov gaining power over all the property in the country. IT must pay market prices.