I am asking you to add housing as you might know better what it is.
But to address your concerns directly:
1) this was discussed during Gingrich’s welfare reform: many people were better off on welfare in a short term, leading to multi-generational decline and trap. Need to look beyond today’s money to the future.
2) We, as a community, do a lot of things that are not most convenient – not work a day a week, eat overpriced food, abstain from our wives for part of the month. See Beitza 25 that this is all training of our middah of savlanut. So, we could do the right thing here if we were motivated. Maybe not as perfect as other chumros, but at least some.