Nobody does this because nobody wants to do this. Communal and multigenerational living was the default standard for all of human history. But as soon as people are wealthy enough in any society, they get out of it.
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Doubly so for children. Being locked into a rigid hierarchical familial/social situation that one is born into completely inhibits the development of self reliance, individuality, and a (healthy) ego. You are never allowed to be something that you are not expected to be by others and thus can never truly grow as a person. And if you try, you will be cut down to size, because "who do you think you are?".
For an example, just look at the people who never left your hometown compared to the ones who went and made a life for themselves. It's pretty miserable and depressing to see grown adults trapped as the same person they were in high school.
For an example, just look at the people who never left your hometown compared to the ones who went and made a life for themselves. It's pretty miserable and depressing to see grown adults trapped as the same person they were in high school.