Anyone recently buy a 1.7M home on ~550k Annual Income?

My wife and I are in the market to buy a house. We feel like anything in the low 1s is just not that great (or even exists) and we have to make so much compromise. 1.5-1.7 is where we are finding we really don't compromise on anything and get everything we want, a "forever home" number.

I make ~400k with plenty of career growth ahead of me, and I reasonably think I would not have trouble finding another similar paying job, as I just went through a job hunt ~1y ago. I also have a few side projects that are growing month over month and currently yield another few thousand per month. So I know more money is coming through that. My manager also is starting to posture me for promo which would probably bump me up to close to 500. My wife makes ~120k a year. Current NW is about 850k, with $360k in cash for down payment, $350k in stocks and remaining in 401k.

PITI would be around $11k/mo, we have no plan for kids within 3 years and have no debt, no student loans, all cars paid off, etc.

With $11k/mo and factoring in interest on taxes, my reasoning for why this will be fine is that it will basically be like we live on $300k a year with housing paid for. I lived on $200k a year at the beginning of my career, and paid rent, and still felt like I lived like a king and most people in the bay area live just fine on <$300k a year while still paying some kind of housing.

However, no matter how much I convince myself its fine, it still feels insane. It only gets worse when I come on here and r/realestate and people are saying, "You need to be making $800k a year to comfortably pay a 1.7 mortgage!" and "Most people who are making $500k a year and buy $2m house put down 1m+!" or maybe I'll find one person saying they make 500k a year and have a 1.7m house but they bought it at 2% interest rate, etc.

Im struggling to find anyone that says, "I make 500k and just bought a 1.7m house at ~7% interest rate and its fine", even though all the numbers make sense.