Exactly. Which is why I said "goodbye" to my hard-won Dolores Park apartment and set up shop in Silicon Beach. The commutes between the places you'd want to live and want to work are relatively short, there are many members of the opposite sex to carouse with or befriend, people are very friendly (because they aren't exhausted from working/commuting 12 hours a day), and the weather is fantastic. The only advantage San Francisco area has is the Giants and Yamo.

Incidentally we (Factual) are hiring right now, drop me a line if you really want to hear me rant about the advantages of living and working down here.