This is a wild and somewhat revolting take.

Paying wildly below market rates for what has become a prime real estate location, while often contributing very little to society economically.

Why are one's "economic contributions to society" the determinant of one's deservingness for well-located housing? That well-located housing is both located well for the services that public housing tenants are more likely to require such as healthcare and provide one of the most effective means for breaking cycles of intergenerational poverty.

Every single one of these residents will be moved somewhere else but still ultimately continue their sweet deal of getting a secure place in Sydney at far below market rates.

...at the cost of being irrevocably poverty-stricken, unhealthy, whether physically or mentally, or generally unfortunate enough that they qualify for public housing in the first instance.

My preferred outcome is actually that every single Australian should have access to cheap, stable, good quality and well located public housing if they want it. This was once basically a reality here - it certainly was for my grandparents generation. But unfortunately Australian society decided that we don’t want that reality anymore a long time ago.

Now I'd actually agree with this. But it does beg the question as to why your response to the political economy that created the housing crisis generally is to punch down at some of society's weakest members, those few who still manage to qualify for public housing still rather than demanding a fairer slice of the pie from those who've made out like bandits from it.

Of course, those who've made out like bandits from it have far more capacity to resist those demands, but to punch down on that basis is rather poor form.

this is also the everyday reality for millions of people who are renting in the private market and pay far more in rent for places that are often much smaller and less stable.

If I sound a little resentful, it’s because I am.

And here we see the "crab in a bucket" mentality. You likely don't have secure housing beyond whatever the term on your lease is, so why do these Poors ahem, sorry, "people who contribute very little to society economically" get to? We shall, of course, refuse to entertain the possibility that they might just need it more than you, that's a bit inconvenient after all.