The 100% remote company I work for is based in Chicago and pays Chicago market rate for all positions regardless of where you live (I live in South Dakota). I find that it's generally fair and a plus to both the company and the employee this way.
Compensation models at Gitlab & Buffer strike me as being creepily paternalistic in pursuit of some misunderstanding of egalitarianism. Who wants to work for a company that's keeping tabs on where you live to make sure you don't get too far ahead of your peers?? Sounds like something out of a digital age Atlas Shrugged.
Current employer tried to pull the local salary adjustment. I wasnt interested. In this market I think it's fairly easy to negotiate which I did.
Remote is an OK perk, but not worth a massive pay cut.