I'm from here and still live in the mountains. The 60s spirit has waned. I wouldn't say SC has hippy vibes anymore. Just take a walk down pacific avenue and look around, compared to 20 years ago.
Having grown up in Santa Cruz, the place kind of died for me after the Loma Prieta Earthquake. The Santa Cruz downtown merchants/city council really screwed up with the rebuild. Took the beautiful Roy Rydell botanical mall and turned it in to little San Jose...
"Major open source projects, particularly the Linux kernel, are done entirely over email to great success."
This is a good model of how to collaborate, but it's also a bit self selecting don't you think? Unfortunately the reality at most day jobs is that a lot of people you work with are simply trying to get by.
Offshoring labor has been around for a long time, and the problems associated with it haven't magically disappeared because people know how to use Zoom.