I see your point. But in that case, why not just pay somewhat more, but not SF-level, salaries to the top talent in remote locations? Its a win-win for both - the employer and the talented folks.
Anecdotally, I heard this is what Google and Uber did in Pittsburgh.
That's often the case in practice. In locations with low cost of living and relatively limited opportunities for tech employment, remote work for a distributed team can pay quite well relative to local options.
Anecdotally, I heard this is what Google and Uber did in Pittsburgh.