At some point in many engineers' careers, the startup scene becomes a bit less appealing. This isn't just because of work-life balance or ageism -- it's because most startups only need a few senior-level employees. The majority of startup employees are young because startups need people to do entry-level work, and young people are willing to. If you want to do truly interesting, challenging, senior-level programming work, you are far more likely to find it at a large company than at a startup.
That's not to say that there isn't plenty of boring work at large companies, because there is a ton of it, but rather that large companies have more open positions for senior-level engineers doing interesting work than startups do. Their benefits are also quite good, which matters more when you have a family. Most of these large companies are in the south bay, and if you are going to work at one of those companies, you might as well live nearby and save yourself the aggravation of a long commute, whether it be by car, train, or Google bus.
I know plenty of people who live in SF, and frankly some of them end up going out in San Francisco less often than I do. Most of their weeknights consist of going home, eating dinner, and watching TV or reading a book, just like most people. The big difference is that they pay over $3k for their apartments, and I pay half that. If you're going to have a conventional, boring home life 5 days a week, you might as well save some money. I can go to San Francisco whenever I feel like it.
It's hard to agree on pricing though, San Jose has one of the most expensive prices per sq. foot in the country. According to certain charts even higher than SF. Which I never understood, the density is much lower and there seems to be more space but from what I understand it's because most properties are big(ger) houses on large lots that take up a lot of space.
I have to think the ranking would be a lot different if it was calculated on (or to account for) lot size.
EDIT:
That really surprises me, given the Contra Dance scene in Asheville.
Now I'm moving again a year later after I bought a house (rental options are terrible in small towns) mostly because my spouse has basically zero job prospects here despite some great credentials which meant an effective 30% pay cut on top of what I took to be a remote worker instead of onsite in a large metro area.
Don't move to Asheville specifically unless everyone in the house already has a job lined up or is really good at cooking or being a server.
I like the bay area; I lived there for 10 years, and I travel there regularly. But the myth that it has some unique access to the outdoors is absurd. At my house in town in New England, I can walk out my back door and ski in the winter, and the Appalachian Trail is about 5 miles away.
I used to live in New England. There were definitely parts I liked - I really miss the seasons, and I grew up 15 minutes away from the birthplace of the American Revolution, and there are some charming walks in the woods. But there are very few places that give you the combination of beaches, marsh flats, mountains, redwoods, urban attractions, and the weather to enjoy it all that the Bay Area has within an hour drive.
Exactly the same conditions? No, of course not. Functionally equivalent (better in some ways, worse in others)? Absolutely there are lots of other options. I don't have the ocean, but I have better mountains than the bay area, and wonderful rivers. That's a win in my book, but reasonable people may disagree.
I don't see anyone on this thread saying that the bay area is bad. As I said, I love the bay area, and I'll probably live there again. It just isn't a magical land that's better than anywhere else on earth.
But SF is unique in that you have a major, cosmopolitan city that's relatively close to a wide variety of terrain and environments, from beaches to forest to mountains, etc. SF is a compromise like any other option, but if you love the outdoors, it's one that gives you a hell of a lot of flexibility while still enjoying the benefits of a large city. It's not Jackson Hole, where the mountains are right there, but no one expects it to be.
Although I get one of the biggest appeals to SF besides the flexibility is the large tech industry, but you'd be surprised how many meetups, companies and stuff you can get to because of the close proximity to two major metropolitan cities, and Irvine (believe it or not) is huge in tech but just business in general here.
I'm not saying "don't come here" (like many Coloradoans do). Just do your research.
That $350k number probably includes Denver and the surrounding area - the "under $500k" (like $450-499) number is more appropriate for closer to downtown.
Edit: According to Zillow you are correct http://www.zillow.com/denver-co/home-values/ http://www.zillow.com/seattle-wa/home-values/
The Denver Post says $400, but that's still not Seattle prices. http://www.denverpost.com/2016/06/03/denver-median-home-sold...
The Coast Ranges -- to which eastern seaboard mountain ranges might be loosely comparable -- are a lot closer to SV than 3.5 hours.
Now, if you are concerned about skiing, the limiting factor for SV is access to snow, not access to mountains.