I, personally, did not know about the way we treat intl comp on the calculator because I do not work in people ops. I found it useful new information.
It seems to me that the reverse of your policy would be best for the world. If you free people to move, they can choose community, friends, family, politics over being tied to a single geographic location where most of the activity is. This would help with availability of technologists in many disadvantaged locales, and would provide an influx of taxable income and consumer spending locally. This should have the ultimate effect of improving economic conditions in depressed areas, and when that happens you can actually come back and reduce everyone's wages across all locales because the economy is healthier and more robust. It works out for the owners too in the end, if they take a long enough view.
I guess it depends on your perspective whether this is the case. With the current policy, if the implementation works, GitLab employees should be free to move anywhere without sacrificing anything in terms of living conditions. If you live somewhere with low costs of living, you can move to your community in an area with higher costs of living, without noticing in the amount of things you can purchase. The same holds true when you move to an area with lower costs of living, but of course, you'd get paid less.
I also hear you in your concern. There is a flip side perspective to what you are saying as well where someone might be forced to uproot from their home which happens to be in a more expensive area because they would save so much elsewhere. But regardless of the specific arguments, what I have truly learned here in this thread is that we should continue the conversation in the community. I am going to sync up with the people ops org and suggest that we share our rationale in more detail in the near future and/or also incorporate the good points that were raised.
I do think it is amazing that GitLab brings these conversations to the fore because opacity has been the norm for way too long around comp and we need to change that as an industry and community.