I fail to see how this disproves it, it merely proves that you're not a good choice for them (because you live in a, relatively, expensive region).
If what OP is saying is true, then the company might as well be upfront about it.
Regardless of that, the average salaries are posted online and they seem to suggest quite the opposite to what they offer people outside of US. It's just an indication of how much of a bully culture they have in negotiations or discriminatory, they might as well just outsource the site and not have a team of their own at all.
This argument sounds more selfish than fair to me.
A company should follow some rules to neutralise the discrimination between employees, it shouldn't be all pick and choose and take advantage where they can, that's not really the reason one should have a remote distributed team to get cheap labor.