I'm sure Edinburgh is a nice place, but living in a city (or even a town) is not at all desireable to a lot of people.
Quite so -- I'm one who would never consider living in any large city or even a moderately sized town again. I've gotten used to the peace of rural living and like it that way. For me, having quiet roads, a very low crime rate, lower property prices, fresh air, and lots of open space far outweighs the supposed benefits of having shops and other facilities right on the doorstep. Yes, I have to drive 4-1/2 miles to the nearest supermarket, but it only takes a few minutes and it's a relaxing drive. Go late in the evening and sometimes I can make the whole journey without even passing another car until I reach town. I can lay in bed at night and hear absolutely nothing outside (except the sea if it's rough).
I happened to catch the last few minutes of the show while working on a TV the other night. They mentioned that £200,000 in Edinburgh will only buy a 2-BR flat. Whatever benefits the city might have, insane real-estate prices like that are going to rule it out for a lot of people right from the start.