I do -- and I'll tell you what, as an annual salary, $165,000 is plenty to live on in DC. If they were like Congressmen and had to maintain two residences, it might be a different story. And seriously, most of the lower paid ones -- the district judges -- are living in parts of the country that are far less expensive than DC.
$165K with a wife and a couple of kids is not a lot of money for DC. You can likely make it work if you have preexisting wealth but if not then the wife is going to likely be working as well.