I have had that choice to move to SV several times. And no doubt make a pile of money. But I don't want to live in the US. I want to live here. And if you follow indices that measure quality of life, security, democracy, freedom etc. it is easy to see why. Norway is usually at the top of those indices -- the US very much isn't.
I think this is also the reason we have an anemic tech sector: if you have a lot to lose, you become risk averse. Why start a company and gamble money when you can find a mediocre, well paid job where you work 7.5 hours per day, 5 days per week, go home at the end of the day and focus on what you want to do?
I think part of our problem is a lack of fear of not making it. We don't have to make it to have a good life. And we know it.
(It is also a factor that the cost of living in SV is a lot higher than here. I did the numbers many years ago, and I'd have to make more than double what I make here to have the same amount of disposable income in SV)