As someone from the UK with a Hungarian partner - you pretty much nailed it.
The older members of her family look back with fondness on that period in time which sounds strange to someone from a western country but I can sort of understand it - some of it is just the nostalgia of youth but some of it is I think caused because the freedom to make choices comes with the requirement to live with your choices.
When the state keeps the safety rail up in where you live, where you work and how you spend your leisure time you have a clear path towards how to live your life - which is a comfortable if stifled existence.
That said, the younger diaspora have a different way of looking at the world - many left to move to other EU countries because they wanted to avoid that nostalgia.
That said I truly love visiting Hungary, the history, art and food is amazing, the people are warm and friendly and the countryside is staggeringly beautiful (as is the Balaton).
It's certainly on my list of places to suggest people visit.