Well I live a lot further away than Oakland. I commute from along the 680 corridor which is further than may are willing to endure, I think. Luckily there's still quite a lot of affordable housing in safe neighborhoods in San Leandro, Hayward and El Cerrito (to name a few), all of which are much shorter commutes than mine.
But the more general answer to your question: When supply outstrips demand the only reasonable response is to build more housing.
Complaining that driving jobs have low value isn't constructive. The value of those jobs will approach zero soon due to technology. Instead, address the economic imbalance and let supply meet the demand.
Most of the Lyft drivers I've spoken to recently lived in Walnut Creek or further out. I only occasionally seem to get someone from Oakland, let alone SF.
What's your response going to be when Oakland also becomes "extremely expensive neighborhoods" (if it isn't already)?