Earlier quoted context omitted.
I think that loads of people are fine with apartments because of the price/convenience/location. If you ask a young couple "would you rather pay $1500/month to be in an apartment or $3000/month to be in a SFH", you think everyone is choosing the latter?
Once they have kids, almost everyone who can afford it chooses a home in the quietest and safest neighborhood they can get into. Apartments are fun when you are young and want to live downtown and enjoy the restaurants and the night life. When you get older and want your home to be a refuge and raise a family, apartments really suck.
What I remember most about living in a flat was my wife and I being able to walk to work and our son being able to walk to school. Didn't hear the neighbours and we had access to really nice private gardens.
There is nothing fundamentally sucky about apartments/flats.
Edit: Of course, a lot of flats/apartments suck - but then again so do many houses. If you have flats built with proper construction and sensibly planned then they can be very pleasant.