You say my position is flawed, but I don't exactly see how your explanation differs from my understanding. As far as I can tell, we both see the same outcome,

You say my position is flawed, but I don't exactly see how your explanation differs from my understanding. As far as I can tell, we both see the same outcome, whereas you don't see how the loss of upside to disadvantaged (read: the vast majority of) buyers shifts wealth upstream while endangering the economy in the event of a downturn when homeowners will find themselves unable to fall back on appreciated equity in their homes.