I think a lot of people misjudge Silicon Valley. They aren't where they are because of vision. They are there because they managed to control much of technology. They aren't going to give away any opportunities regardless if it is housing or smart phones. They of course have to keep up appearances, some might even believe it, but the reality is that if housing became cheap people would lose hundreds of thousands, if not millions, of dollars. And if they let go of control of the technology market they would lose a lot of market share, if not their jobs.

I personally don't think there has ever been any real indication that the Bay Area would become utopian. It is just that there used to be a "flaw" (relative to US society) where technology was undervalued, so opportunities were cheap. That has now been corrected, so you are paying for those opportunities.