Did they optimize for driving, or optimize for affordability?
At every place I've ever worked, "optimize for cycling" has actually meant "optimize for being a millionaire". The housing near work is literally 250% more expensive than regular housing, and most people can't afford that.
And even if you do optimize for cycling, at some point you'll have to get a new job that wrecks this plan. Do you force your family to move every 2-3 years, everytime you get a new job, so you can continue to live cycling-distance to it? If you have a spouse, which of the two of you gets to live cycling-distance to work?