These people are going to work and pay a fee to live in a place every month, and rarely is the rent for the same size house better than the mortgage. You're overthinking this.

To most people, the debt is just a magical number on a paper and means nothing to them so long as their daily activities remain unhindered. And indeed, if things go wrong what then? Same thing as rent vs. buying, you lose your place you file bankruptcy whatever. Makes no difference to the buyer.

The only conceivable alternative that you might like is not having to pay for your basic needs, but, that's not going to happen ever in a capitalist society. So good luck with that fantasy.