I can understand how the mayor feels because software coding is just like finance, it does nothing to contribute to the economy other than offer a service. We need a manufacturing economy to bring jobs back. Service economies are third world. However, banning sets a dangerous precedent.
I'm a programmer, so maybe I shouldn't be surprised by my not understanding.
You're saying that having many many programmers that are really well paid and who provide a service with no requirements other than infrastructure (energy as clean as you provide and no manufacturing needs) who live, buy stuff, pay taxes, and all that - is a bad thing.
But having less well paid blue collar workers who buy less stuff, pay less taxes, and whose jobs require the inflow of goods and the outflow of goods (ie. who have more overhead and infrastructure needs) and who may or may not be replaceable with robots is a better thing.
How does that work?
As a previous resident of neighboring Redwood City I understand about screwing up downtown. Dunno how you'd fix it other than zoning or screwing with tax rates on software companies - and no idea how you'd do that. But the suggested financial angle - that I don't get.