Some companies and businesses manage to cobble together globe-spanning supply chains, so the excuse that they can't interact with "far away" people seems a bit dubious. Sooner or later, there will be VC's that figure out how to interact in a way that, while not 'as good' as being there in person, will be 'good enough', and will reap some nice profits from it.

There are a lot of good things about SV, but there are also some good reasons to get out and go to smaller hubs - stuff like Boulder, Portland, and other places like that where life is more enjoyable.