Angle on Venice: Renovation over Restoration

My research on Venice is focused on the ongoing discussions regarding tourism and the future development of the city. Venice cannot develop as most other cities because it's economy depends so heavily on the 22 million tourists that come to the city annually (a growing number) that value is almost completely derived from visitors. This means that any development of the city is made with visitors in mind instead of the less than 500,000 residents. This is problematic because Venice's visiting population is peculiar in that almost all of those visitors come only for one day and spend little money, if any, using the city as a 'free theme park.' This is hindering the development of a Venice for residents in the center mainly because funds are used for the restoration of older buildings whose only purpose is to draw tourists but no longer contribute to the fabric of the city programmatically. The discussion seems to be diverted into 2 plausible futures:

1. Venice accepts that the visitors are more valuable than the residents and proceeds to turn itself into a museum city where residents are moved out and workers are brought in every day to work selected shops; the idea of rebuilding a local culture and trades is given up and replaced with maintenance of the little that is remaining, or falsely imitating the trades that are historically expected. This way Venice can protect the art and architecture as a heritage site without competing with the needs of residents as well as visitors.
   
2. Venetians retake the city after the number of visitors is deemed unsustainable. Certain sectors of the city remain 'outdoor museums' and are maintained for a now restricted number of visitors who must pay an entrance fee. Elsewhere in the center, buildings are renovated (not restored) and added onto in order to thrust Venetian life into a sustainable and economically viable future, with old trades restored and new trades started. 

On another note, here are some useful maps of the city that present canals and roads a little differently. Here's a link to the full PDF http://www.radicalcartography.net/venice.pdf. The authors were students in Venice when they made this, so I imagine they spent a lot of time figuring out the data in real time. The writing is pretty good too, they talk about the pedestrian point of view and how the situation in Venice could be applied elsewhere if you replace Canals with incidents like highways.

Just canals - Islands

Blocks, that can span several islands and disregard the need of canals.

How the two intersect.