I live in a council house...i also have a degree in housing, therefore, i find myself very well qualified to answer this question.
It is a combination of people like you and the Right to Buy policy that have created the residualisation that we have today on social housing estates and the segregation of society. In other european countries, the housing is not divided in this way and there is no stigma attached to rented accommodation like there is in the UK.
I rent a council property because i don't want to be a home owner and that is my choice. It does not mean that i sit around drinking beer all day and causing trouble - i work hard to ensure that my tenants have quality housing conditions!
People in this country need to stop being so narrow minded. Maybe if someone is around all day it is because they have so much money they don't need to work!!! There are many reasons why someone might not work, don't always assume that they are living off the state.
Also, i meet people everyday that do live off the state but don't want to, and are trapped in a no win situation of the governments policy makers' making!!!
Finally, i would like to point out that the Section 106 agreements (which is the law that you are referring to) does not give houses to the council. It could be enforced in a variety of ways including improvement of the surrounding infrastructure, a fixed sum to be paid to the Local Authority to allocate to affordable housing on another site, or the provision on site of affordable housing. The houses are sold at a lower rate, usually to housing associations, to be used to provide affordable housing. This could be shared ownership, to give people a chance to own a home in an ever unaffordable housing market.
Everybody has to start somewhere and if people weren't buying 2nd properties to rent out instead of getting a pension, we wouldn't have the inflated house prices that we have at present which is the main reason for this legislation in the first place!
BEWARE: If there is another interest rate hike and house price crash like in the early 90's, it is people just like you that will be glad of the provision of affordable housing!!