>Remote employees who wish to remain with Yahoo! must uproot their families, move to a more expensive city, and face an hours long commute each day. Frankly, I see the majority of them quitting and going to work for a startup closer to home.

I think she's drastically overestimating how easy it is to change jobs. There's also the fact that, Yahoo, as a large and well established firm, can offer things like generous insurance and retirement plans, which startups generally do not offer.