Sounds like a great way to selfdestruct.
"Hey, guess what, you have to move to $middleofnowhere."
"Hey, guess what, I quit."
Exactly how the conversation would go if it ever happened to me. What would happen in such a situation is the good employees would quit because they wouldn't want to compromise their salary, marketability, and ability to take a new job, while the dead weight would go with it because it's still easier than finding a new job if they can build up enough job security in their current one.
Also interesting that someone thinks you should do it... who just happens to own office space in said location.
Cities work because there is the infrastructure and the talent pool. Going to the middle of nowhere might save a pittance on salary, but when people inevitably quit, good luck replacing them without spending even more on moving other people there.