Nobody paying those salaries sees it as risk compensation, so I don’t see how that can be true. Also, can’t you move back, or is there some requirement you pay into your system?
Not every developer there wants/can/will move to SF for a FAANG job (or to NY, Seattle, etc)
You won't get paid the top salaries if you're with MS in Miami, or with a "legacy company" in a less popular city, etc
Remote might change that of course
No it's not. That's extremely high even by bay area standards. I'm sure you can find some new luxury apartments that go for that, but that's definitely not the norm.
And note that the US is more than just the bay area.
It's a big province. Winter sure isn't warm north of Prince George.
Disclaimer: I work for Google. Words my own.
EDIT: according to this Berlin has the 4th highest rents in Germany https://de.statista.com/statistik/daten/studie/1885/umfrage/... (€ per square meter, for 2-3BR - which Germans call "3-4 rooms" - you can for ease of calculation assume 100 mˆ2)
The only people paying 5-10k for an apartment are doing it in a trendy area, posh building, or both. Personally I'd consider that a waste of money but to each their own.
E g. In Vienna/Austria a 2-3 bedroom apartment here is about 1-2k while in the bay area it's between 5-10k. If I lose my job I still have a social net that will soften my fall, while in SV you're on your own and can get evicted from one day to the other. We have a single payer healthcare system while in the US certain health issues can, despite being insured, lead to financial ruin.
That being said my salary was until now always a 5-figure salary. In my upcoming job I will for the first time in my career path get a 6-figure salary which excluding bonuses is 70% higher and including bonuses can be up to 89% higher than currently. It took me quite some while to get there, and I can assure others that jobs paying those amounts don't grow on trees. It requires both talent and charisma, and honestly also luck, to land such a job. Constantly switching jobs and chasing slightly higher salaries definitely isn't the way to go.