It would also be foolish to move to somewhere like the Bay area or Los Angeles where the location of your new job could result in a 90 minute commute both way. (e.g. you move to North Beach and land a job in Palo Alto). Moving sucks. Moving twice sucks more :)
What you must be prepared to do however is fly to city XYZ at a few days notice, and potentially on your own dime, for one or more interviews. And if you do land that job, be prepared to start the next week.
Yeah, crap, I made the mistake of not being prepared for that when I moved out here (Cambridge area, MA). I interviewed, they wanted me right away, so I had to literally pack my things and get my ass out there before I could do basic stuff like look for a place to live. I had my laptop and a suitcase full of clothes and other stuff and that was it.
Personally, I'd be wary of a company wanting to hire me without having to meet me in person. Inversely, if I'm running a company, I won't hire somebody I haven't even met.
I asked one of the higher-ups this same question after being hired, and they said that they scouted my blog, Twitter and Github accounts, among others, and with what they heard over the phone, they felt I was a really good fit in their company. Had I not taken the time to build my online persona, I doubt I would've had been hired. This doesn't just apply to job-hunting in remote locations, but nowadays it should be a big part of it.
Two years later, I got laid off due to economic factors. This led to getting a job in the Bay Area. I had multiple phone interviews and a short programming test before getting the job, but I didn't have to fly over to California once.
The author does raise some good points, though. While I obviously don't have any proof, I have always suspected that some job offers were passed over me due to my location at the time, especially while in Puerto Rico (two prospective employers strongly suggested that I get a visa to work in the U.S. - ignoring the fact that Puerto Rico is a U.S. territory, making me a U.S. citizen). So while I would say it's a bit more difficult to go job-hunting in remote locations, it's definitely not impossible.