Add to that the absurd housing costs in, say, London, and things don't look too shabby for Berlin. Although you need to be tolerant towards the locals. I can understand some people having problems with that nonchalant "don't care if you care because, you know, I don't care" attitude that sometimes shows. But if you're capable of letting the occasional inflammatory/stupid remark slide, these guys and gals are quite nice. (Protip: This ability is great to have pretty much anywhere. Hanlon's Razor, anyone?)
To me, London is great to spend a few days of vacation. The atmosphere, the people, British humour, all great. Still, I never felt the urge to permanently move there to work. Too crowded, hard to get a decent flat... I guess it's not always just the money.