>is the consequence of a massively distorted economy.

Distorted in so many ways. 

> But it's gone on for so long that the current system is perceived as the status quo.

And the "status quo" doesn't take as long to settle into anymore. It is like people get used to the "new normal" in a matter of weeks, and the new normal is progressively getting worse.  

>I disagree with the statement that investing into housing is "morally wrong."

I get it. I see it morally wrong from the perspective of a healthy society. But, society is driven by the economy now, so that is what it is. From the perspective of what we have, it is the smart play, and morals don't come into it.

> and a lack of real investment opportunities in productive ventures. 

I see this as the key failing of the economy. What gets invested into is what makes money, and what makes money is generally not productive for humanity. It isn't even trying to be productive for humanity. 

>and "market failure" is the only excuse they have to offer.

Funny isn't it? The market never fails - it just tracks demand and supply. We don't demand for wellbeing, we demand for instant gratification. The companies that provide even the most transitory pleasure, are the ones that make the most money. And that money has to go somewhere, so it goes into investments that generate more money. It doesn't matter what mechanism, but people are looking for the highest return, given their risk tolerance.