Maybe for you, in your current life situation, but that isn't for everyone. You might want a large apartment to live in, and a small room near the "party/bar zone" where you can sleep off your night. Similar to the above you might want a large place for the family, and a small place near work so you can get to the next shift. The above are somewhat common reasons people already take two apartments in the same city.

And there are also people who would be interested in an apartment in a different city. A favorite vacation destination. Near the in-laws so you can visit and yet get away. A short term job. The foreigner in an unstable country who wants every possible reason for customs to let him in if things get bad enough to flee. Hotels fill some of that, but if the price was right an apartment where you can leave spare things instead of packing starts to look nice.

Mostly it isn't economical, and I don't see that changing. However in the imagined world where it was very cheap you might be interested in a second flat just across town. It would change your lifestyle to use it.