Saying, "If SF is a better environment for startups the cost of living should be a small trade off" doesn't work.

Everything depends on your personal situation. If you are launching a startup, LAUNCH IT. You don't need to be in SF.

If you want to live where the center of the startup universe is, if you want to not be able to swing a dead cat around your head without hitting another entrepreneur, if you like it 60-65 degrees almost every day of the year, SF is the place for you.

You don't NEED to be in SF to launch a startup unless your service/product is narrowly defined as SF residents using it. Plenty of startups move to the Bay Area when they need funding- but...you can always visit and check it out yourself.

I'd say, launch your startup now. That is key- forward momentum.