However, we also have several small restaurants, and a couple larger ones that barely can stay open (and many can go under). One of the reasons is that many other establishments that they compete with serve liquor. But will the churches allow that? Nooooo. But they continue to avoid any taxation. This is a scam.
Now that I have said that, I must also point out that none of these are mega-churches and most do good work. But it aggravates me that they occupy prime town property and have to make it difficult for others because of their beliefs, but do not pay to support local business or infrastructure. Without public roads, sidewalks, etc., they would not exist.

... but are ineligible for tax exempt status. If the blanket exemption were removed for churches and they had to qualify the same way all other 501c groups do, few would make it.

Here are exempt activities that the organization has to pursue as a substantial reason for its existence:

The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals. The term charitable is used in its generally accepted legal sense and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.

https://www.irs.gov/charities-non-profits/charitable-organizations/exempt-purposes-internal-revenue-code-section-501c3

I've been in churches and worked for one; I've been in a number of educational organizations and worked for a couple. My kid's been in a couple. My wife's in a church and in addition being a religious organization it feeds the homeless one Saturday a month (but is in a self-organized consortium of churches so that every Saturday's covered.)

I was even board member of a non-501(c)(3) non-profit. They used to exist in greater numbers, but when the non-profit status became a regulatory thing most incorporated under the new regs. Its primary existence was as a kind of co-op to provide books and food as a student services organization.

All the other groups on the list have to prove a benefit to the community. Whether your wife’s church feeds the homeless or buys a new jet for the pastor is irrelevant. They still qualify as a religious organization.