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Home IS Living. Here is why:
1. I have to wait in line to do things. This is living.
2. I have to walk to where I want to go. This is living.
3. When I go to public areas there is advertising all over. This is living.
4. There is a constant attempts to get money from me. This is living.
5. I am not good at pool or bowling, and have little interest to do them. This is living (for me).
6. Public spaces are owner by corporate interests. This is living.

Not sure what the complain here asking if it is living. It looks like living to me. In fact, I think Sony emulated too much of real life, like lines. So, it is too much living.

Now, is the question whether or not it is alive. I think that answer is "no". Alive is Second Life, which is also free. It is a full of life, complete with its drops, shortcoming and other issues. It doesn't have lines though, and you can teleport to where is needed. There is no wait to to load areas either.