In a perfect world yes, but a majority of the people having issues right now are people that thought they would live there short term and sell before the ARM increased. Only problem is the market peaked and the prices dropped so they couldn't get rid of it or drop it. Now they are stuck with something they don't want and can NOT afford because the payment increased....
Some people like them, personally I will NEVER have a flexible rate loan!
I think what he meant was that your needs will change from when you are 20's until dream/retirement age. Even then you might buy a bigger home now and end up downgrading as you get older and kids leave. Then again, feel free to post pics in another thread if you want your dream crushed... j/k