Only after you've tried to account for all of the intangibles, though. The right location can give you many benefits—workforce, networking opportunities, media access—that aren't available everywhere. Some of that can be done virtually, but in-person meetings still are much more memorable for many people.

Also, if all your company is doing is "hacking code", then I doubt your company will be around for very long.

All that being said, I do agree with the sentiment, and I think that the benefits of high-cost locales are probably not worth the increased cost of living. I definitely appreciate my Midwest mortgage payment.