I backpacked across South America for 7 weeks back in 2005 and agree with you about the warmth and friendliness of the people. It would be a great place to live as a Digital Nomad, once the expensive flights (from the UK) are paid living costs are very low.
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Yeah, I agree the flight prices are a killer! The good news is a couple of low-cost airlines are starting to do routes: Norwegian Air and Sky Airline (from Chile), which could be around 150 EUR one way from Barcelona once the initial demand dies down.
Not the super cheap £10 to mainland Europe flights but definitely affordable. I'll have to keep my eye on those. It was over £600 when I went.