That's only a spiral if you expect organizations to stay in Mtn. View no matter what. At some point your spiral reaches a point where Mtn. View based companies

That's only a spiral if you expect organizations to stay in Mtn. View no matter what. At some point your spiral reaches a point where Mtn. View based companies are beaten out by companies in sane cities with sane costs of living, and then Mtn. View reaches an equilibrium.