Earlier quoted context omitted.
I'll concede this point - it is primarily about communication. In theory you can resolve this (I'm at a remote company now and think gathertown is a great tool for this), but the lift is high and I suspect the majority of remote companies are operating at a net negative vs. colocation because of this. Even with these tools, some natural amount of human communication/interaction is lost. It mostly hurts spontaneous co…
The competitive disadvantage RTO companies have is trying to hire locally. We have the pick of the best engineers from around the country (in some cases, world) because we pay bay area (startup adjusted) salaries regardless of where you live. The team is top notch - probably the best I’ve ever worked with. So yeah - a cost to maintaining comms culture, but the payoff can be pretty nonlinear.
So being located in the Bay Area gets you the world’s best people without the negative tradeoffs of remote.
That said, I think your point is valid for startups located outside of hubs. If your company would otherwise be located in rural South Dakota (or even a decent sized non-hub city), then yes - remote is more compelling for the reasons you state. Whether that’s a competitive advantage on net given the downsides is not clear to me.