I also got my land incredibly cheaply that way. No one wanted to take a risk on an unproven plot of land, everybody wants some place where they can already legally get water/power/electric. By doing all the legwork and legal to prove utilities I basically made $30k profit in a year just by passively testing and connecting water/electric/septic at my own risk.
I built this place for ~1/3 the price of anything else available because even a completely burnt out husk of a trailer is more expensive than DIY building a house due to the weird dynamics of the housing market that places a gigantic premium on being the guy who takes all the risk of connecting utilities and getting a permitted residential structure.
Your thesis that I can't sell an actual house for the price of all the unmortgagable burned out trailers that sell like hotcakes is interesting but false. I don't expect this dynamic to change much until most of those ~0% mortgages expire or a massive new supply of housing emerges.
They've been brainwashed into "safety" since they were 3 years old, so anything outside of that box is literally unthinkable to them. Their mind literally shuts down trying to process it.
So it's workable for a niche group of people but not the majority.