You do realize there's a Costco in Soma right? It's swamped with people. I go, and I live in Russian Hill.
I agree with the rest of your statement, but they're only building in a very small part of SF and catering to a narrow demographic. Soma 1br condo prices can implode, but RH and Pacific Heights 2-3BR places will only go up.
Don't buy the nicest place in a bad neighborhood. Buy the most modest place in a nice neighborhood. Let everyone else bring up your home's worth.