Folks who don't want to take on debt can still do that - they won't have to worry about getting their down payment back... but they won't be living in their home for decades...
Yeap, life can be tough, but there are ways to get around being buried under a mountain of debt. Usually it is just a matter of doing with less until you can afford more. I wish I had the money to get into more real estate right now. There are a lot of bargains that will make good money when the market turns.