Sweating just not good enough for me, even when it's dry. I can cope with it, it's not like being hot would kill me (within reason and if I stay hydrated), but it has a serious impact on my performance. When it's hot my brain gets foggy and my thoughts slow. Maybe I could still operate at a caveman level of performance in that sort of weather, but I couldn't do my job.
See also: https://www.vox.com/2015/3/23/8278085/singapore-lee-kuan-yew...
Your assumption falls flat because a lot of people don't need to generate extra heat from electricity, they already have too much of it.
Secondly, municipal heat is pretty rare in the US; few cities have it and the number keeps getting smaller each year. What few municipal heat systems that do exist are largely for business districts too, unless if you live in NYC as an American you most likely will be using either AC or forced air natural gas heat. Given the choice between the two[0], AC would be the best possible one from an efficiency perspective.
0: Heat pumps can be used to heat too, which is even better. Its my hope that heat pumps will become more common in the coming decades to assist in electrification.
I'm assuming by "municipal heat" you mean district heating. Can you explain why those systems keep getting rarer in the US? Over here in Europe, we are investing a significant amount of money in expanding those systems and connecting more houses.
And district heating basically doesn’t exist in the US outside of NYC.