I’m in a unique position to do this, because i put myself in that position. i moved near my work and live in an urban area.
even if it cost $400 a month, i would still do it this way. i read when i’m in the car, i wouldn’t trade that for staring at the road.
I’m happy that you’ve found a good situation for yourself and I don’t mean to disparage it. I just don’t think the comparison you’ve made is quite complete.
If one enjoys the lifestyle, spending less on transportation and shifting that spending to housing is a net win. That's how I did it, and for about eight of my eleven years in the Bay, I wouldn't have had it any other way.
I left the Bay in 2018 because I got a remote job and didn't feel like I was getting my money's worth from the city life. Pretty clearly, in 2020, much of what makes city living good is gone, but it will come back; whether that's a matter of years or decades is very much an open question.