I have a simple, genuine question. Why do smart people from countries with the highest quality of life in the world want to immigrate to the US?
Why do people continue to believe that European social democracies have the highest quality of life, when people vote with their feet in the other direction?
PS: Consider the AIDS rate in Washington DC at ~3%. "Our rates are higher than West Africa" http://www.washingtonpost.com/wp-dyn/content/article/2009/03... However, other areas of the country are way below that, even as other groups are much worse. "Black men, with an infection rate of nearly 7 percent, carry the weight of the disease, according to the report, which also underscores that the District's HIV and AIDS population is aging. Almost 1 in 10 residents between the ages of 40 and 49 has the virus."
But if you're younger, have less to lose, and more appetite for risk, this can look unappealing. It acts as a kind of club that you have to break into, for one thing - too many young people in Europe work on the basis of short-term contracts rather than full-time pensionable positions.
FWIW, speaking as an Irishman living in the UK and holder of a H-1B visa, there's a lot to dislike about the Bay Area too, some of which has informed my decision not to move there (as yet). There's something about it as a place to live (outside of work) that feels like a hastily assembled holiday resort, with wooden buildings (I know, earthquakes), car orientation, shallowness of culture and institutionalization of recreation.
Wooden buildings are a problem? With regard to the rest of your complaints -- keep in mind it's a compliment to a superpower to blame all the world's ills on it. For such a small population we sure do rule it, eh?
For example, creating a limited company in Ireland cost me no more than 200 EUR or so and a couple of days. Most governmental administration was in the form of an annual return, but providing accounts isn't necessary for the first return. You send off your income tax monthly, and corporation tax (12.5%) yearly. And VAT isn't a concern until you hit a revenue threshold. The bigger problems in Ireland are networking, partnership opportunities, etc.
From what I've read of obligations on employers in California, the going is somewhat rougher. For example, I see that CA has an 800 USD annual tax for the equivalent, LLCs.
WRT to your boasts of ruling the world, I don't think it quite works that way. Current international trends are quite Westphalian in nature - the US military can't be stretched much further and soft power is fairly easily ignored. See e.g. http://www.economist.com/blogs/charlemagne/2010/03/what_does... for some discussion of the limitations.
But to further parse your snarky bait: Maybe they're not so smart; or, maybe their estimation of "highest quality of life in the world" differs from yours; or, maybe it's because the U.S. is a wonderful place to start and grow businesses and families.