It's not so much the daily rate that governs what accommodation you use. It's more about what you can afford beyond your usual outgoings. I have a large family which costs me a fortune, so although I'm on a good rate I try to keep my costs down when I'm away from home.
The London Youth Hostels do vary a lot in standard. The Oxford Street one is in a great location but is really quite grim and I won't stay there often. Most the others are fine, of the ones I've stayed in. But it's each to their own. Some people hate the idea, or are fine with paying extra for a private room. Hostels are just one of the cheap alternatives for those that prefer to keep costs down.
The London Youth Hostels do vary a lot in standard. The Oxford Street one is in a great location but is really quite grim and I won't stay there often. Most the others are fine, of the ones I've stayed in. But it's each to their own. Some people hate the idea, or are fine with paying extra for a private room. Hostels are just one of the cheap alternatives for those that prefer to keep costs down.

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