Who are these other "culturally important folk" and why are they so important? Not denying they exist, I just don't know who you are talking about.
I still see a lot of opportunity for middle (or possibly upper-middle) class families to live in Seattle although it is not easy. It seems a lot easier than SFO and entirely within reach to me. Something should be done to make sure this stays within reach but we have to be realistic about how that looks. A single family home on a 1/4 acre isn't gonna fly. You're probably going to be sharing at least one wall with someone.
You are echoing the concern I hear often and I have no doubt that you feel what you are describing but I'm just not convinced that it reflects reality.
I lived in Seattle for the summer of 2009 and while I didn't explore a lot of it back then I don't think it has changed much culturally. I hear the "it's an old Seattle thing you wouldn't understand" cliche a lot too. I'm just surprised nobody can articulate what was different then.