This is an interesting strategy. I am a huge fan of more stringent and expensive on-street parking, especially in major cities. If we clear the streets of parked cars we can expand pedestrian space and even add bicycle lanes. In addition to the benefit of added space, more expensive parking can reduce the use of private vehicles by making driving inconvenient and increasing its cost relative to other modes.
One question I do wonder, however, is whether business owners complain the program is unfair. Those businesses in the most congested parking areas will face a reduction in parking and they might see that as a reduction in consumers (despite the fact that vehicular consumers likely make up a very small portion of all consumers in major cities). I could see small businesses especially complaining about the program, despite how it might actually increase their consumer base in the long run.