Just saying, some people do these things for different reasons.
Clearly, there's some tension between these two goals, and the balance shifts back and forth over time.
When you are very wealthy you can have both but for those without that much money I don't blame anyone for choosing functionality over the aesthetics of a neighborhood. It seems rather insane to me to insist that your neighbor must increase their budget 20 or 40 percent (perhaps hundreds of thousands of dollars) just so your house can be a couple percentage points more desirable.
I like nice cars but I dont insist that everyone drive a European sports car just because it would be aesthetically more pleasing. Ultimately, a city/town will be better off if people can spend 20% of their income on housing instead of 50%. Not just because they are selfish or short-sighted but because they can actually use the additional resources on things for themselves, their family, and their community.
Beautiful and comfortable neighborhoods ARE additional resources for ourselves, our families and our communities.
I've lived in really old buildings. Even if the bricks on the outside were over 100 years old it was extremely expensive to update the air conditioning and windows to be a good living experience. Why take such a superficial view of what is "built to last" just because the outside stays the same? Best case scenario for a long last building is a ship of theseus situation. And while it may be cost efficient for historic college campuses to renovate their old buildings continuously, chances are this not applicable to random middle class homeowners.
I've lived in really old buildings too. Right now, I live in an adobe house that was likely first constructed in about 1870. Growing up, I lived in some houses that were built (of stone) in the 1700s. And yes, there are problems caused by the fact that our idea of what a home/house ought to be changes over time, for lots of different reasons.
I still think we can do better than most mid-range contemporary US stick built housing, and the neighborhoods it creates.