The problem today is that most "homeowners" don't really own a home. They own a mortgage.
The concept of borrowing to finance your home isn't a new concept, not by a long shot. What's new is the unrealistic hope/dream that we can buy a house and "trade up" after just a few years and make money doing so.
It drives me nuts when everyone says "I bought a house 2 years ago, and now I'm losing money because the market's going down". How are you "losing money" unless your livelihood is in flipping houses or something. For the average person, homes aren't meant to be short-term investments... if you think in the long term, you will almost always come out ahead in the end.