I used to be extremely anti-HOA... until I lived in a community without one. Local regulations aren't going to keep your idiot neighbors from clogging up the street with their three teenagers' cars, leaving their trashcans (filled with trash) at the curb all week long, keeping the grass under 12", having their home presentable (paint falling off, etc).
I recently sold a home, and it was VERY difficult because of one troublesome neighbor. We got routine feedback that they loved the house but "didn't like the street". Aside from this one neighbor, the street was gorgeous and immaculate.
A *GOOD* association can really work to the betterment of the entire community, and it can be done without grossly interfering in people's lives or turning into a little tyranic government. On the flip side, I'm sure some communities thrive just fine without one. It really depends on the make-up of the homeowners. Of course a bad HOA can be horrific. I know some are run by power-hungry megalomaniacs with nothing better to do than take issue with a bubblegum wrapper on your driveway. Then again, the lines I'm drawing between "good" and "bad" are arbitrary. Buying a home includes studying the neighborhood and the HOA.
The home I'm moving into has an HOA with annual dues of about $250. A pittance to make sure the public green areas (including a community playground) are in good shape and that some asshole doesn't - like someone else mentioned - paint his house pink (this was also done in our last neighborhood, but it was several streets over).