Living in NYC isn't too bad compared to other big cities, unless you only think of NYC as Manhattan. The other boroughs offer cheaper (and safe) rent as long as you are willing to search a bit.
Another note (somewhat unrelated to your comment). I am 23 so I consider most of the cases to be my peers (although I have a job). I'm in a living situation similar to the people featured in this article. I have three roommates and I pay less than 600 for a large room in a large apartment in East Williamsburg. The one thing is, I'm not complaining. I'm also not sure if a majority of the people in this piece are. Living in Manhattan is just not a reasonable, or an enjoyable, option IMO.
You're 23. In 2001 you were 14, you have no fucking idea what the scene was like in Manhattan back then and in no way can compare it to what it's like now. Waxing nostalgic about the 80s or early 90s? Sure, I can see that because the city was a very different place (though not nearly as different as people like to tell themselves it was). But take the faux "oh shit was good then it got bad" routine and stuff it.
I know, since I've been there lot this summer. I also have been watching the crime maps since I'm doing research for house hunting. Crimes in the Bed-Stuy are rare compared to the surrounding areas.
I'm not saying living in New York is bad, especially if you're single in your 20's, but financially it made no sense to me and I'm glad I moved.