Honestly, people working out of the main office for their first 6mo-1y would probably a really advantageous scenario for all involved. The first year is when learning tools and culture as well as developing relationships is most crucial. I would say someone moving from in-office to remote has a big advantage over someone getting hired remote.

True. But is there that much of a difference between "working from home in Palo Alto vs working from home in Boise"?

Probably not.

I feel someone is setting up a company that provides a virtual location in SV for a small fee, but you really live say in Vermont.

Lying to your employer definitely sounds like a good plan. I'm sure that will work out well for the people that try it!

Personally I'd rather be paid less and avoid the stress of getting found out, plus it's not ethical. However life has shown me many people who would not share this perspective.