Anecdotes != conclusions, but for us it worked very well.
In NYC
We're often putting up new jobs. At the moment we are looking for a QA engineer and a business intern (that one is probably San Fransisco but I'm not sure).
I'm not very in tune with our hiring but for a while we were looking for development engineers too. I'm sure it wouldn't hurt to drop a resume if you have experience with embedded Linux development (OpenEmbedded especially), JavaME/PhoneME, Eclipse plug-in development, and a passion for open source.
The job market isn't all that wonderful anywhere else either. What I think will happen is some the people laid off from the various wall street positions will go start boutique shops... Long term they will be bought out and merged together to create larger groups...
Plenty of banks are using this period to ramp up hiring to get the best talent for a bargin. C++ talent is always hard to hire regardless of the market.
The more events and meetups I attend the more I realize that this city is full of great talent, interesting companies and even some reputable VC's. The biggest "problem" for me personally has been weeding through all the non tech people to find others who are doing things that interest me.