The crime problem is overstated. While it appear high on a per capita basis, cities are dynamic. The cancers that plague the city will be forced out of downtown and Jack London once business activity picks up, because that will coincide with an increased presence on the street of people doing things as well as more police (the force is less than half of what is needed).

Oakland has this very unique history of activism that really scares people into not investing here and even that is changing -- for the better.

Funny thing about $1,000/SF apartments in the city though...people start to re-evaluate their options. Even if you do not move your office space to Oakland, you can't beat the 15 min commute from downtown Oakland into the "city". Oakland will never really rival SF but it does not have to. Today, without much of a tech scene, Oakland has many attributes (big city amenities with a small town feel) that allow it to trump the city, including better weather.

I will go on record by saying that Oakland (core, around lake, downtown, Jake London, Uptown, etc) will become one of the most desirable place to live in the Bay Area within the next 10 years.