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Because it's not too bad for everyone.
I live close enough I can get into the city relatively easily for culture, but far enough out that I'm in proper green space is a few minutes, and I can do all of this with the luxury of not needing a car. Yes there are compromises but the positives massively outweigh the negatives for us right now.
Keeping a firm eye on my privilege, I'm lucky in that I could quite easily live anywhere else in the country/world, but that would mean upheaval for all of us as we'd lose contact with the local friends we have. I've lived in London for 20 years and don't want to get out (yet). Maybe that'll change in 7 years when my daughter is old enough to do her own thing.
As for owning, again that's a question of luck and timing. I couldn't now afford to buy a similar property in the area I currently live in.
Why does anyone even want to own in London anymore