Displaced thresholds are mostly there for the heavies that require a 3 degree stabilised approach from the outer marker.
As you have noted, light a/c have no problem setting up a one mile final that will also be one mile away from the hill and approximately level with it.
Perhaps somebody well connected objects to a/c turning final over his house -- not that making the turn 600' closer to the runway would make much difference to those below.
Before it was converted into a construction equipment parking area, I often flew out of a strip with the threshold 50' away from the road. When landing I looked both ways before crossing the street
