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Usually the setback from the lot line is limited. Making the setback equal to the backyard does not seem so smart, as 2 small gardens are probably less fun than having a larger land tract. If the setback increases to reduce the backyard to the smallest dimension, good treet would make for a better landscape street but the “freedom” is lost to do whatever you want in a space hidden from the street (but not from your neighbors or google earth…). But some do it, ending with a parking or a storage in the façade…

A case in Madrid