dividends.
Living in a neighborhood with other established professionals can lead to contacts and relationships that can increase your sphere of influence and launch your career to a new level. This is very common for professionals who launch their own business.
Interest rates and home buying opportunities can pay huge dividends. At times you have to forget the general rule and base a decision on the facts presented.
All of that being said I agree with your statement and in this case you are talking about those who made a mistake. I have been in my modest 3 bedroom home for 15 years and am finally upgrading. Someone might question my decision since I am only 8 years away from having an empty nest. But the home we are buying is amazing and has things we never dreamed of having in a home so we are going to reward ourselves for living in near slums for 15 years.