I might agree with you if gp had said how to get the coal industries going again - but is there really _nothing_ which can usefully be made in community with lots of space and (compared to the bay area) insanely cheap housing?
The solution to high San Francisco housing costs is high density development in exurbs and other cities, and very much not "let's all move to Nebraska".
Of course the real problems are:
1) VCs don't invest here
2) A startup's success is usually based on its ability to sell itself (using networking contacts) to a larger corporation
3) who then REALLY don't want to have an office in Nowhere, Alabama
If they did want to do it, they would have done it already. Lord knows they have the money.