These places look great from the outside (cheap, plenty of space, infrastructure etc.), but the job prospects during a downturn are radically different as compared to the Bay Area (I'm only talking about 2008, not the dotcom bubble).
I think you're underestimating the gap. I wouldn't call every other city a wasteland, but it can sometimes feel like it's hard not to have a tech job in the Bay Area.
It's also possible that people in SV are over-estimating the gap, but I think the reality is closer to the extreme they imagine.
EDIT: why was this downvoted? I'm adding new information that is directly relevant to the parent comment. If what I've heard is untrue, feel free to say so.
http://www.mercurynews.com/2017/12/12/googles-massive-housin...
Residences there will be fine for Google workers (and the few other businesses on the bay side of 101), but it will be a nightmare for everyone else.
I think that's why the purchase price was so cheap.
I could see Google putting in a short-throw underground railroad spur or hyperloop to their campus eventually.