The government will clamp down on the abuses and chill the technique, ruining the use of Subject To.

I don't know any lenders doing this other than possibly the VA (can anyone confirm/deny this?)

Basically stating I can use pictures for promotional uses, access to job site and fee if access denied, and other expectations. 

Nothing is 100%, including insurance, who will do everything possible to deny your claim. 

In most places you can deny on credit and criminal history. 

This is a recent decision where a title insurer denied coverage to an insured owner who had been named in a suit to rescind the deed into the insured. 

3.If a tenant with pet moves in and wishes to convert the pet to ESA or SA, is landlord allowed to deny the request?

The owner occupant term is not "abusive" as you put it.

My concern is whether the city could deny permits for these modifications, such as removing walls or converting a garage, or if they are mainly just concerned with safety and habitability.

Each time I more vehemently denied it than the first.