Why should you be allowed to create a corporation that has no actual purpose other than a shield for your own private concerns?
You should be allowed to do whatever you want, by default. Preventing things only make sense if there's good reason to.
Otherwise everything you do, you have to first think about whether you are allowed to, like a slave.
There are lots of benefits to putting your home into a living trust. It just has one side effect of hiding your name on public GIS of tax parcels. One reason to do a trust is so that you can alter who benefits from it without amending a will.
You are right, it is completely absurd. And it's great! Anonymous companies and tax havens (domestic and international) are something completely contrary to how society at large is organized. And it is the best thing which has ever been invented. They are accessible to any person who has about a thousand dollars, no matter your race, sex, age, ethnicity, family name, political affiliation, or any other factors except that tiny sum. If you're not born into wealth or into a politically connected family, making an LLC is the only opportunity you have in life to not be a human battery in the Matrix. And it's easily accessible to anyone. Incredible.
Ideally, it should not be possible for random hateful people to easily get name/address records from local governments, but that's unfortunately not the world we live in yet.