I really don't understand this. A career in software is one of the most pampered and lucrative ones I can think of. Due to the shortage of software engineers, we can go anywhere and get a job instantly. The only downside I can think of is ageism, but then again, I have colleagues in their 50s and 60s where I work. But I suppose this isn't universal. (I'm in Atlanta and we have a lot of older workers. Age doesn't seem…
For another, despite our compensation we're still much weaker at the bargaining table, individually, than our employers. See how casually so many of them reject applicants just to make sure "false positives" don't get through the hiring pipeline. I'm not saying they shouldn't do that—it's not my point—but it's definitely a sign of who's setting the terms of these interactions, and where the power is. And it'd be incredibly unusual if that weren't the case, as the overwhelming norm is for employers to have a huge advantage in labor negotiations versus individual workers, even if circumstances are currently such that those workers are paid a lot of money.
And then, software development and related jobs are not all at FAANG, or even close to that. Many of those working in software aren't negotiating, individually, from a position even a little better than a "normal" office worker. Probably most, in fact. There's a whole world of software developers out there beyond SV, Seattle, and New York—the average state of a worker in our industry, even just in the US, is probably much closer to the norm outside those places than in them.
It's also a proven avenue for putting a stop to all sorts of abuses that exist due to the uneven power of workers and employers, not just direct compensation. Lots of non-California workers in tech are under badly disadvantageous employment agreements, but without working collectively, either through unions or government, against them, they're so common that resisting them carries high individual risk and a low chance of benefiting anyone else who's in an even worse position to resist them. That flexibility to work or create our own businesses you bring up? Yeah, that could be assured for non-California, non-public-figure-rockstar developers, too, through union negotiations.