Incorporating in Delaware is not moving to Delaware. And entrepreneurs aren't going to move to South Dakota if that state starts making favourable laws, because

Incorporating in Delaware is not moving to Delaware. And entrepreneurs aren't going to move to South Dakota if that state starts making favourable laws, because that's not where the population centers are (and hence markets for both customers and talent). Yes, you can "factor in a state's laws", but you're missing my point that no significant demographic of migrants will bother with "oh noes, that state broke into a criminal's iphone". The "invisible hand of the market as applied to the electoral system" does not apply in the OP's given context.