Perhaps it would have been better not to specify, then, as it was a source of confusion in contrast to "huge". However, $5k a year is roughly $400/mo, which would pay for a 10x10 office at $4/sqft, which doesn't strike me as outlandish.

> if you always pick the offer that provides the highest salary, you will get that salary at the expense of all else

Firstly, that's a big "if". It assumes there are always/frequently multiple competing offers. I have found, alternatively, at least among more senior engineers, that the offer stage is only reached after first evaluating other factors (such as suitability of working environment).

Secondly, salary offers are, especially in the cases of multiple competing ones, are rarely final, as evidenced by many discussions and advice regarding salary negotiation tactics.

Thirdly, "at the expense of all else" is demonstrably false, as there are numerous examples (Google, whom you mentioned, being not the least) of companies who provide remarkably generous benefits and perks, in addition to high salaries, while not providing private offices.

The idea that the sole motivation is cost is, therefore, unpersuasive.