I am pretty sure a lot of Asian and Indian people will find that racist and offensive. I certainly do, and I'm neither.
As to New York, per my comment NY might be but Wall Street sucks the oxygen out of the talent room, similarly London where the City takes all the tech talent and starves startups of top-tier talent.
Most startups are boring ass websites with none viable business ideas. They do not need baller engineers. If they have a working business eventually, they're competing to hire the smart folks based upon the mix of compensation, work and colleagues. If you can't build a biz that can sustain a compelling mix of those three hiring ingredients, you aren't allowed to successfully hire good engineers.
People: you aren't allowed to blame your crap hiring strategy on NYC finance firms scooping up all the smart engineers that wanted to work in finance. There are so many smart engineers who do / want live in NYC and Not work in finance. If you're failing to hire people it's because you have at least one of the following: a work environment that isn't a sane/pleasant place to spend 40 hours a week, crap compensation, or your biz is a CRUD website with the personality of a heavily used smelly sponge.
No particular category of business "deserves" smart people, they work hard to get those folks. And frankly, most startups are just crud websites. Additionally, the vast majority of interesting engineering challenges only happen at larger organizations. (That said, there are many small tech businesses that have really cool tech challenges, but that's the exception rather than the rule).
Let me restate that: most startups have boring work, terrible hours and crap pay.
Tl;dr to quote a favorite phrase of an awesome friend / software engineer: "fuck you, pay me money [if you want me to work with you]"
New York is a lovely place to live, one of the most truely urban and actually diverse locales one the planet. Certainly the only city in the US with subways that work 24/7 and good food at all hours. Not having to drive is a beautiful healthy thing.
http://www.forbes.com/sites/trulia/2012/11/13/finding-divers...
"The Houston region is now the most racially and ethnically diverse large metropolitan area in the United States, surpassing the New York metro area, acccording to a new analysis of Census data." [1]
(Granted, the study was done by folks at Rice University here in Houston ....)
[1] http://content.usatoday.com/communities/ondeadline/post/2012...
I lived in Atlanta for a long time, which is very "diverse" in the sense that there are large numbers of each of whites, blacks, and hispanics. But it was nothing like New York where you had viable communities of say Trinidadians versus Jamaicans, etc.
New York is far and away the most diverse place in the country, and only a few places in the world can compare (e.g. London).