As far as your reaction to Long Island, I had a similar (yet somehow totally different) story recently about the NYC area. I have been under threat of losing my job for months (well years really, but it keeps getting worse) so I have been job hunting some. Well, I got a call from a recruiter offering me an interview for a job in Yonkers, NY. The job sounded really good, but I thought... Yonkers? Yikes.

But I agreed to look into the company and the area and call her back. I live in New York State, but I have to be honest, I don't know a whole lot about anything near New York City, so I went online and looked up Yonkers. Then I looked at a map to figure out where people who work in Yonkers must live.
Anyway, lets just say that even if we didn't owe any money on our home here in Rochester, the equity wouldn't be enough for a down payment on a similar home in that area. And for about 2-3 times what our 1700 sq. ft. home is worth, we could probably get a 1 -2 bedroom apartment.
So I guess what I am trying to say is I understand your reaction to the housing prices on Long Island, and it was easy for me to turn down that job interview!