That might mean that PG (and the other YC folks) would have to move as well. AFAICT, YC wants to be close to the founders for physical meetings. It might not be easy for YC folks to move (they have their lives, etc.).
Willingness to move to the YC location is a precondition of being accepted into YC. I have to move from Mountain View CA to Cambridge MA for SFP... even though WFPs are held here, where I already live. But I'm not complaining at all; living in Boston for a while sounds great.