Loft City?

I hosted a dinner program last night at a trendy restaurant on Washington Avenue in downtown St. Louis. It was a pretty cool place, with a extensive wine list (What, no Mad Dog?), and a decor full of wood panelling and subdued lighting that made for a very intimate environment.
I parked in a garage a block or so away, and as I walked down the street, what struck me was the sheer number of older buildings that are being converted to lofts. Some of the developments are advertising roof-top pools, private parking, and prices in the multiple hundreds-of-thousands of dollars. All I kept thinking was, "Who lives in all these places and what do they do for a living?"
The other things that nag at me are why people want to live in a part of town with no neighborhood grocery stores, very few family-friendly venues nearby, the threat of urban street crime, and the possibility that your investment may not pay off in the long run. Then again, maybe I've just lived in the suburbs too long.
I don't blame the city, or developers, for promoting a product that brings much needed revenue to St. Louis. I just wonder about the long-term viability of this trend.