>I still believe that there are enough hackers who would be willing to work for a much worse salary if they could obey hacker ethics and morality. Of course this implies working at a place that is much cheaper than Bay Area. But even under this premise: Where is the money supposed to come from to pay an even much lower salary reliably?

I think this is essentially the role Mozilla fills in the SF/SV ecosystem at least. Everyone knows Mozilla engineers are equally or greater respected than anyone from Facebook or Google. The problem is there's only room for one Mozilla. There simply isn't enough donations to support more.