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Really, what's wrong? As of right they have to go through insane amount of immigration hoops, and sensless paperwork.
The cost for running a business in the UK/Western eruope is pretty high. It might make sense for some startups to move to SV/SF anyways. At e least they will have a lot of raw talent in here, and a support net.
While the local economy will benefit from this too.
It seems like a win-win situation. If your "startup" is in India, then you might want to think twice about it, but if it is from a well developed country, where costs of living are comparable, SV becomes a lot more attractive once the stupid artificial immigrations barriers are lowered.