Where in space would you live other than Earth? Their is no habitable planet in our solar system, and it would take hundreds of year with our current technology to terraform Mars or any other planet to be habitable like Earth.
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 divinely 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, he has displayed his ignorance several times.