Fair point about raising money in New York with a startup, but I feel like he just glosses over trying to bootstrap. Seems like there are a fair number of startups already there for a support group (plus, plenty of support channels online), and there are definitely places to live in NYC that are comparable in price to SF or the valley (Manhattan does not NYC make).

I would argue that bootstrapping in NYC might even be easier than SF - the pay rates for contract programmers (especially if you can get hired by a bank or hedge fund) are very high, and there are fewer contractors flooding the market. You can also just work for a hedge fund for about a year, and that will keep you fed for a good year or so after you quit. And then, you bootstrap.