Now that I think of it, no-one I work with (with families) live in SF, even my boss and her boss (undoubtedly making north of 200k) all live outside the city (and even outside the peninsula) in places like Castro Valley, Fremont, etc. and most of those places have caught up pretty well with SF prices so I have no idea where to go next. (We bought a house in Tracy, CA that we are renting out, which was the closest place we could afford to buy).
I can't even begin to think where the next generation of workers will be living and in what conditions. Seems to me that if the 'middle class' is already being priced out of the city (and most of the bay area in general), in another 20 years or so, the city will either consists of VCs/dotcom/execs or prices will have to fall significantly.