I think it's more of a Canadian thing than a Waterloo thing. Ironically it's the same Canadian conservative attitude that investors often complain about (not shooting for the moon) that is responsible for the more pragmatic, practical attitude of entrepreneurs here. Waterloo is special because it has three great academic institutions and a culture of entrepreneurship that stretches back many years and encompasses everything from textiles to brewery and distillation industries.
I just commented and have pretty much the same opinion that you do. I've often wondered if this practical opinion on has anything to do with Canadians having to shovel the snow. Hear me out...
In the U.S., there are dramatic weather and natural disasters that bring communities together. Floods, tornadoes, hurricanes, earth quakes. We don't have these extremes. But what we lack for in extreme weather, we make up for in volume. In Canada, we just have snow that has to get shovelled often. That means waking up a few times a week in your neighbourhood to shovel snow and side walks. Folks that don't do it are shamed and pressured into doing it. But even if they hold out, somebody just shovels the damn snow, because we're all the better for it. There is nothing more annoying than walking 90 m down a perfectly shovelled sidewalk and then having to walk 5 m along icy packed snow because some jerk refused to pitch in.
With snow, when everybody pitches in their share of effort, entire cities can function. That has a profound impact on how you see government programs. "If I pitch in my bit, and everybody pitches in theirs, our health care/education/transit system can be pretty good". Moreover, when you actually see cities dig out from underneath snow, you debunk the myth that people are lazy. Most people, and a vast majority at that, pitch in and get things going. Again, this contributes a great deal toward our mindset on social programs.
