Ok so what is Fred saying here? Defending generalizations by specific examples is fairly pointless. He almost confirmed the argument by citing examples!

"Deep down inside, every entrepreneur working outside of the bay area worries that they are not as competitive and will not be as successful because they are not in Silicon Valley" well, if it is indeed easier to meet people in the Bay Area and to meet other entrepreneurs, then sure you are at a disadvantage being elsewhere. Doesn't mean you won't get anywhere, just means you'll need a different plan.

Generalizations will always have counter-examples and I think it's very silly to take them to heart as I believe Fred did.