>Status quo is much simpler - it's banned but if neighbours all agree have a late party and police aren't called
How is that any different to what I just wrote? In your own example, the "What's the radius" and "How do you confirm all have agreed" is no different either.
This isn't a court, so no need for a paper trail. Rules are already like this in many flat complexes - I'd say most even, here in Denmark: No loud noise after X except with neighbour permission. Silence after Y.
Much better than a guideline in my opinion.