I don't think the author realizes that large businesses that rely on software see tech as a team sport, in which camaraderie plays a huge role. Subconsciously, they're willing to pay another $40k for a better social/emotional experience.
Who is a theoretical startup hotshot going to prefer? Option A, who is also in San Francisco, who talks about concerts and cool events they went to every weekend, who stays up late hacking on fun side projects, etc etc. Option B, ives in Omaha, nice enough person but pretty much always logs off at 5pm. Has 3 kids screaming in the background of every Zoom call. Likes board games.
That's not to say B has zero chance of employment. In my experience, B can existed at a company but has to have some seriously strong technical chops, know the higher-ups really well, AND be an integral part of the company in terms of how critical infra is maintained.