“It is an Ir Hatorah”
It was an Ir Hatorah before people who waste their time in the Coffee room moved there.
Living in the Kodesh Hakadoshim requires requires a much higher standard. Most people actually need the down time in the CR or other Kosher diversions.
Most people should realize that their living in the Kodesh Hakadoshim will dilute the intense Kedusha, and not move there.