They are highly respected, well compensated, and get paid to work on interesting and challenging problems. In certain labour markets, money and perks are thrown at them.
I live very far from SV, and my job is certainly not as enjoyable as software development, and I can tell you with 100% conviction that there are much, much worse options out there.
I'm struggling to understand your viewpoint. You must have led a very [charmed/sheltered] life if you honestly believe that software engineers are lower than Egyptian slaves on the totem pole. I don't mean that as a personal dig at you, but comments like that rub me the wrong way when I would drag myself through broken glass and barbed wire to have the life of a Silicon Valley software dev.