I think the main point you’re stating is like I mentioned in another message, people are simply different and like different things and will spend their money where they think is the best value for them. This is why we have more than 1 car manufacturer in the world as well as so many companies for practically everything.
In regards to cities, some people simply don’t like living there. As you hate the suburbs, having lived in a major downtown city (SF), I for one don’t like it at all, especially at this point in my life…That could change if circumstances change, but by then, I could always move as well.
In regards to the Cheesecake factory effect, isn’t that an effect for practically everything we consume? Most people like new, clean, reasonably priced (best bang for the buck) items. This applies to cars, people (attractive, nice, clean, not too expensive ;)…you name it.
Anyhow, not knocking your desire for city life, but amazing to believe, some folks really don’t mind cookie cutter, small lot areas since we have other pursuits/passions in life and where we live is just a place to crash and store stuff.
I think most cities have been moving away from bringing families back to live there due to lower tax revenue and families simply seem to like the whole yard, house, picket fence thing.