The reason these high cost of living places exist is because they are in high demand due to all the benefits. Someone living in North Dakota (sorry anyone who is, I'm sure it is great!) won't have all the culture, food, weather, entertainment, night life, etc of someone living in the bay area.
A "Do the Right Thing" would be to truly embrace "remote-first" and realize you are paying someone for the work they do, not where they live. We are paying $x for job y and what you do with the value you bring to the company is up to you: live some place nice or some place cheap.
Our company is 100% remote (most live in bay area anyways) and we don't have pay scales by area.