For students it works out OK (so long as numbers don't grow too much) because the very wealthy people who paid for Oxford's university to exist built somewhere for students to live right inside the university too, in effect their housing costs are subsidised - until they graduate. Then though, either they need to move far away ASAP or they're going to be spending most of their income on rent.
For those it's true, but also forgetting there's more than one university in Oxford. There are plenty of places on the East and North sides of the city where denser housing could have been placed, but it comes down more to politics around NIMBYism and preservation, more than geography.
If you want to take the naming thing, then consider Kidlington Aerodrome is called "London Oxford Airport"...
Will somewhat agree living in London, but I'd also throw Oxford into the mix as somewhere to avoid. I found the relative cost of living noticeably worse in Oxford (salary vs living costs) than compared to London.
Essentially the main point being: really evaluate the cost of living, salary, lifestyle matrix before committing. Lots of other places in the UK offering much better options right now.