Exactly. If companies tried to do this then people could just get a virtual address in an expensive city say New York and go and live somewhere cheap, say Guate

Exactly. If companies tried to do this then people could just get a virtual address in an expensive city say New York and go and live somewhere cheap, say Guatemala. Also let's say out of 10 big software companies 8 offer same pay wherever you are, 2 location based. Which one are you gonna work for?