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Don’t you think the amount of remote work has changed that?

I think part of the problem is the presumed loss aversion of moving from a $300k salary to, say, a $175k one that is remote but allows for a better standard of living (particularly for families).

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You say this as if getting a fully remote job that pays $175k is easy to come by… I’d guess that most people making $300k in high-priced areas would take this paycut to $175k every day of the week and twice on sunday if they were offered

This just doesn't make sense to me. The employer can hire two instead of one while getting the same performance. Supposing we're not talking about 8+ hours timezone difference, it's much more valuable than just having someone physically in the office!

I keep wanting to think this way as well, but then I am reminded that there are more costs for a position than just the salary most of the time. Lots of administrative overhead. I don't know actual numbers, but it's probably more of a conversion of one position into two for 30-40% of the salary at best.

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