I agree.
I'm an Xoogler, and before I quit last summer, our group had been slated to move from the main Mountain View campus to the new "Tech Corners" campus in Sunnyvale[1].
Before Google, I'd worked remote for 15 years, and am working remote again now. About the only thing that made working in the open-office environment tolerable was the feeling of being in the main campus where things were happening. Collaborating with other groups was a 5-10 minute walk or bike ride, rather than a hangout. I went nearly every week to TGIF in Charlies, and I went to a lot of the author talks, and to one off events (like internal job fairs, the MK fair before they got rid of it, GoogleWeen, etc), and use the urgent care clinic. Not to mention that we had zillions of cafes and food trucks to choose from, multiple gyms, multiple TechStops, etc.
Once you're all the way in Sunnyvale, in-person meetings become much more difficult, and the amenities like I mentioned above drop away. At that point, you might as well be in some lower-cost area with cheaper housing and a better commute. Or working remotely :)
[1]The new building was a new-style REWS abomination with impressive public spaces to walk through on the way to totally open offices with no cube walls (as opposed to the 4' walls around the 12 person cubes in the building I was in). So there was a lot of resistance in my group..