I think there is more space than we think.Not even beginning to address the land use problem. You assume that allocating more land for wind farms and solar farms is OK (it basically isn't) and then propose locating the batteries on the same land. Hey, why not locate them underground? Disused coal mines?
The other weasel word new to me is "peak shave". Why not call it what that basically is, electricity rationing. Reducing demand instead of increasing generating capacity to accommodate increased peak demand. It is as if consumption of electricity is the problem, when demand increases as a direct result of Net Zero policy to end gas for domestic heating, and targets for more heat pumps and EVs. The Government is pretending that the answer is for plebs to make more sacrifices, while paying higher tariffs for a restricted renewable supply of electricity. There will be pushback, because rationing energy is not acceptable in a modern industrialised society.
Only about 2% (?) of the UK has buildings on it and even in densely populated Surrey there is more land dedicated to golf courses than housing.
"Buildings cover less of Britain than the land revealed when the tide goes out." https://www.bbc.co.uk/news/uk-41901297
And of course one can have solar panels on buildings too.
Agriculture and solar farms can also coexist. As evidenced by sheep grazing under solar arrays. And solar farms can be established where the land is less arable. And rotating arrays that follow the sun, while more expensive, capture a lot more energy and are more space-efficient.
Agree with your general point about rationing and the way in which the general citizenry always seems to get it in the neck.
Small scale domestic generation may be part of the solution. But then, as soon as it threatens profits, that too will become subject to increasing regulation.