Yes, we all should choose the location based on what we are trying to optimize for. I run an enterprise SaaS, and I project that over the next ten years, being based in the global corporate hub will create optionality that's worth more than the increase in my running costs. So I moved internationally to live & build in NYC.
Once I crystalized what I wanted to optimize for (the "why" and the "what"), many other big decisions downgraded into low-uncertainty execution issues of "how".
However, this calculation is personal and will differ for every startup/founder. I'd even say that unless you are sure that NYC/Manhattan is the right place for you right now, it almost certainly isn't. Living & building here requires conviction and must be re-evaluated every few years.