>>35817
The citizens only feel their lives are lacking because they know of these far-away lands and are sold on materialistic ideas. From the billboards towering over them to the commercials flowing into their life, and corporate skyscrapers revealing to them a striking wealth disparity.
It is not a matter of inherent needs, but of revealed priviliges.
I understand your point about the hinterland being more enjoyable, after all, it is the norm of humanity to have access to large swaths of nature, but I just can't see spreading out as the solution.
Here in Canada, urban sprawl has been causing much of the farmland to be gobbled up by suburban sprawl. Sure, you have more internal living space than an apartment, but the overall loss of space for the communities in the area is lost.
On a related note, have you heard of Dunbar's number? It might be of interest.