Yes. You don't pay less, but you get more/bigger. So many people just tough it out and optimise for a short commute, instead of a big place. The cost savings is also offset by paying for parking, since public transportation is very limited.
Berkeley is easily as expensive as SF of not more.
I wouldn't say so. You can still get perfectly alright freestanding houses in the non-ghetto parts of Berkeley for under a million.
Listed, not going. Berkeley right now has the highest over asking sale price in the bay, averaging 48%.