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And we should resist this. Do other global products cost less if purchased in cheaper locations? The value we bring to a company is the same regardless of where we're working from. We shouldn't accept lower compensation because of irrelevant "cost of living" arguments.

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You can try that, but then why should SF/US based employees be paid more?

Sauce for the goose is sauce for the gander and all that.

It's not that SF/US based employees will look to be paid more it's that people in India who have comparable skills will look for compensation closer to what one gets in SF/US. Why would they accept prevailing outsourcing shop wages now that they can work directly for western companies? This change is already occurring in the circle I'm in contact with.

It's both. The market will find a new equilibrium somewhere below SF and above India.

Surely that improves more than it hurts? I'm under the strong impression that most software developers aren't on these FAANG salaries.

Sure, as long as you don't live in SF/US. It's almost certainly going to help me, but I'm not sure I'd like it if I was based in the Valley.

I'm just pointing out some of the potential consequences.

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