Humans probably would biologically evolve if on the moon for a while.
I personally wouldn't live in space. We are living on the blessed Earth in which Rasuls (messengers), nabis (prophets), imams, and divinley guided servants of Allah walked on! Why leave it and its blessings to go settle on Space? Why abandon Imam Mahdi (a.j) to go explore, while Earth still needs to be worked on? I also do not trust Stephen Hawking.