To answer your question, yes, pay in SF/CA/USA definitely outweighs the increased cost of living. Software engineers here are paid more than anywhere else in the world.

It makes sense though since the wealthiest tech companies in the world are here, the most talented engineers gather here for that reason, and companies can afford to pay high compensation packages in order to get the best talent.

I don't expect other parts of the world to increase software engineer comp until they start producing much more billion dollar tech companies.