Fully agree, but we already have quite a few problems there, not sure if startupfication will make it much worse.

I see the positive side of keeping people there instead of having to try their luck abroad.

Actually I would like to see all district capitals enjoy startup fever, specially the inner country ones.

Depends on how it's handled. If it's bastardized with US companies coming in to exploit the existing low salaries and then suppress them by co-ordinating and fighting to bring in others from other low-paid countries, then yes it's likely going to be ruinous to it.

If it's a small, European centric scene, by Europeans and for Europeans which grows organically outward then it stands a chance to enrich the city.

Personally I'm not much of an advocate for Europe welcoming SV folks and their VC masters in.