While I like our system in Sweden, there has been a dramatic change in the last 10 years. Especially for students, youth, foreigners and others with a limited social network.
The housing market is ridiculous, both for renting and buying, especially compared to 10 years ago. For students it has become harder to both get accepted to university and to keep their student benefits. Foreign students have harder to get admitted, not competing fully with Swedish students and also soon have to pay tuition around 8000€/year. When you finish school you won't get unemployment benefits, but instead have to apply for welfare if you can't find a job instantly. I've heard it's a funny feeling having studied for five years and then being interrogated by welfare workers who can't understand why you're there in the first place. If you're young you basically won't get any help for the first three months of unemployment, which is when you want it.
Off the top of my head I know several people who has moved to Berlin explicitly for the cheaper housing and better quality of life. Swedish DJ Petter Nordkvist[1] has stated in interviews[2] that he moved to Berlin because "it is nearly impossible to find a flat [in Stockholm] if you don’t buy". An example even more relevant to this site is Soundcloud. The founders attended university and the Stockholm School of Entrepreneurship in Sweden and then moved themselves and their company to Berlin, stating "since it was and still is affordable to live and work there"[3] as one of the reasons for moving.
[1] http://www.discogs.com/artist/Petter+Nordkvist [2] http://www.hrfq3.sakura.ne.jp/home//e_interview/petter02/ind... [3] http://blog.twingly.com/2010/05/18/from-stockholm-to-berlin-...