The whole of the US sometimes seems to be a checkerboard of these low-pressure zones with lots of time and space but no money, and the boomtowns with lots of money, a frenzied pace and chronic housing scarcity. Neither version is very liveable. After taking a few extended cross country road trips over the past couple of years, this sentence from the article rang the most true.
Ideally, startups would look at those costs, do the analysis, and make the decision to locate elsewhere in order to minimize risk. But SF (and NYC) have a kind of legendary status as being where successful tech companies begin. I think that status makes it difficult to consider the value of location based on a cost-benefit analysis.
Paradoxically, the sector that has the knowledge and employee base to be geographically independent are also the ones that pay the most for their location. At a gut-check level I feel there is quite a bit of "Irrational Exuberance" going on in the VC/Tech sector right now.