I don't disagree wholly, but where will the money come from? No matter how much you need a house, if you don't qualify for a 2 million dollar mortgage, it won't happen. The only question is, will enough sellers give in? I don't think there are any buyers at these levels.
I get what you are saying but you are exaggerating. Few houses are 2M+, most are hovering around a M outside of prime areas except in the luxury market.
Personally I suspect a loosening of mortgage rules, market specific wise most people are buying condos, 2 beds are the new entry houses.