Olathe is a suburb and is a part of the greater Kansas City metro. Kansas City is about twenty miles away.
Meanwhile, in Redwood City alone, within walking distance from my house, I can count about 20 companies who might reasonably employ me.
I'll agree there isn't as much competition, but, the high end positions are _very_ few and far between.
Also, it's great to have many "competitor" companies working within a few miles of each other. If you decided to leave a company like Playfish, all the competitor companies like Zynga, Rock You, and Playdom will want to snatch you up in a hurry.
Except that then we'd have to deal with taxes, and corrupt city government (ok, SF isn't much better in that regard), and paying a private security force so we don't get shot, and fixing up houses that are in worse-than-teardown condition. And when I just want to write software - it's probably not worth the hassle. Organizing a mass relocation can be a pretty big drag.
That attitude comes from a different era. That "most employees understand" thing came from a time when there was something called "Job Security" so people understood that in return for moving, they had a reasonably good chance at keeping their jobs.
In this day and age, where you live in an at-will employment world, I know of _nobody_ in the bay-area technology scene who would relocate to kansas from California. Can you imagine what would happen if you relocated to Kansas and then were laid off? Olathe doesn't even have a Craigslist entry. The closest entry I could find was Kansas City, and the Bay area has about 15x to 20x the number of job listings.
I'm in absolute love with Vancouver, British Columbia, and one day, if I'm very lucky, hope to return there, (I visit about 4-5 times a year, my heart really is in that city) - but I couldn't rationally relocate my career out of the valley.
There is a different between being a wonderful place to work, and a wonderful place to live.