Sure - draw a line that lets those Na Jomtien restaurants use the area at night. It's an absolutely beautiful setting and would help tourism.
I get it, squatting is bad. There was a brand new beautiful two lane section of road built in Pattaya years ago. There was an "S" curve in part of it, and a restaurant decided to build an awning and place tables in front of their shop, taking up a whole lane. Absolutely stupid! Not sure if anyone was killed as it was a blind curve, and it was shut down quickly.
Tourism is critical to Thailand, and this use of the beach would be a boon if properly managed.