I think people are blowing his words out of proportion. I found his comments were delivered casually, with a pretty straightforward message: he wasn't discounting what SV has to offer, he was simply stating it has more to offer to those who know don't know what they're doing.

He didn't know what he was doing when he founded FB (by his own admission), and so moving to SV was immensely helpful for him. He knows how to run a company now, and was simply stating that for those who live outside SV and know what they're doing, there's nothing intrinsically holding you back from success by locale.