Really comes down to what people believe to be a "better road".
If a road is built for safety and limited access, then why make it go through the downtowns of these small towns, it appears so they don't lose business.
But if the roads bring more business, just not through downtown, or provide an opportunity to get more business for economic development, then it will increase the tax base long term.
Trying to build safer road on existing ROW's almost always require the acquisition of private property. So while I understand its an issue, one must remember that no matter what, if they want a road improvement, property will be required period no matter how it is routed.