Exactly this... to your first point, second tier cities in terms of software development jobs (Phoenix, Austin, Atlanta, etc) have a lot to offer. There's enough contract work that you can always find something within a couple weeks, and pay is generally competitive to salaried positions. There's also quite a bit of FT work, but more of that will be with more stable tech.

YMMV, but the quality of life, at least for me in Phoenix feels significantly better. I may not be making a quarter million or more a year as I might in SV, but I also don't have nearly the level of stress in my life.