I agree with Apognophos & AlphaMan. I think one should not be hasty to judgement and should get all the facts and know the whole story. Site planning can be very complicated. Sometimes there are very few options. I've seen some lots that were deemed unbuilldable because no working site plan could be found.
Apognophos: expecting someone to build in a way that defers to a neighbor, without any compensation or contract made between them, is setting a dangerous precedent
I agree with that. That could extremely complicate "neighbor law" and make people afraid to buy property. Building codes, zoning laws, etc. are complicated enough as it is. If neighbors' preferences had to be factored in, it could be a nightmare.
I agree that if there was some kind of gentleman's agreement made by those who are in a position to make such an agreement, it should have been honored, but we don't know the whole story. We don't know what was said and we don't know who said it.