In my experience, it turns out bad for everyone. The company gets a far higher ratio of people who don't mind being lowly valued, the workers get lowly valued. Bad for everyone.

The numbers indicate that many more are willing than those who are not.

What the Bay Area does have is a greater concentration of talented engineers than any other major municipality. When you're trying to make a concrete decision where to locate your startup, that matters. And most of the people who argue "Don't move to SF" aren't actually arguing "Move somewhere else", it's usually "Adopt a distributed team where you pick the best engineers regardless of location." The latter approach has a bunch of its own problems, so it becomes a tradeoff of getting the biggest possible talent pool possible vs. reducing communication costs and building a team locally.

[1] http://en.wikipedia.org/wiki/Joy%27s_Law_%28management%29

Just joking, but I think your logic might be slightly missing some other important factors.

(FWIW, I personally have little interest in supermodels...but then, most people would consider that lack of interest = "not willing", so the logic still holds. Like all logic, it obscures subtleties - I'd be quite willing if she were a good match beyond being a supermodel and I weren't already attached - but then, this is a problem generally with imposing words on the world, and not with the specific instance.)

Keep in mind, I said "willing to go," not that they were already there.