I interpret “let the market decide” as also charging market rates for street parking, in which case the resources are only as limited as the market decides -- if more people want to park than there is room for, the private market can meet that demand by building garages/private lots.
The High Cost of Free Parking (https://en.wikipedia.org/wiki/The_High_Cost_of_Free_Parking) is pretty eye-opening in terms of how non-drivers end up bearing the cost of parking minimums.