The essay's stated thesis is that the Valley is and will continue to be a hub for startups because of the abundance of Venture Capital and talent, both of which

The essay's stated thesis is that the Valley is and will continue to be a hub for startups because of the abundance of Venture Capital and talent, both of which are produced by previous startups, maintaining a strong cycle of success. At the same time, the essay points out that Seattle is a center because Gates and Allen wanted to move back home, and it has been suggested in past essays that Venture Capital is increasingly less necessary for startups. My impression is that PG has unintentionally suggested that the current state of high housing prices and less Venture Capital could easily reduce the Valley's role in the startup market. The way for other cities to capitalize on this is to convince smaller, upcoming companies to move "back home", or not relocate to the Valley in the first place. As some commenters have pointed out, other states may have legislation that is less inviting to startups, and these should be repealed. Ultimately, startups will probably flourish wherever smart, ambitious people want to live, as long as the government treats them well.