that's right. Youtube is not making any money (so it has no proven businness model), but it's founders are rich. So, I would say it is a huge success for them, but if you look at it in a traditional point of view, it is a failure.

The bottom line, they have millions in the bank, and you don't (ok, maybe you do, I don't know you).

If you plan to build some cool technology, and want to flip it to somebody else, that has the means to monetise it, the SF Bay area is the place to be.

If you want to build something small, and more of a traditional company, then a low cost area might make sense.

But have no boubt about it, some of the best talent is the bay area. It is like the Hollywood for geeks. The place where you can make it big. The place where the gold rush mentality will always prevail, as the people are drawn in here to make it big.

It seems that Web. 2.0 is out, and Green Tech is in. That's the new current bubble.