You have excellent points here. I would also add that the Bay Area really missed the point from an innovation perspective when they started investing billions by and not leading with solving real problems.

As an example you only need to look at the amount of money the FAANG companies spend at consuming your data to sell to advertisers - their investments in data mining for that data, various technologies for click-bait advertising, etc. rather than addressing holes in cybersecurity, technology that may help in the climate crisis, tracking child predators, sex traffickers, mass shooters/shootings etc.

The Bay Area is known for caring about Social Networks, Apple products, Amazon's BS, Google (screwing search results around) and just now slowly increasing biotech...it doesn't have a track record of caring about innovation around important items but more around throwing large sums of money at trivially bullshit stuff - yes, my opinion, but this is a fact and has an impact.