QANTAS pilots don't have to live in the middle of Sydney (I could not think of anything worse, apart from HKG). The QF pilot will not be a 737 FO for ever. He is under First World labour law and breathing clean air. He can bid onto other bases, live on a farm or in a small country town, as many do now, where prices are very affordable. From what I hear, QF staff travel is quite good. A good many CX boys and girls have already voted with their feet.
Your analogy is quite bizarre. Enjoy the smog.