Another thing about high cost of living in places like that is maybe you're willing to spend 10% as much on a car as on a house. In Palo Alto that means you can buy two new loaded Teslas to go with your 2BR/1BA cottage; in the midwest, one used Toyota to go with a 4BR/3BA house on 5 acres.
(and Elon Musk's counterargument to all of this is that he's working on a 30-50k car next. I'm sure he'll deliver. The segment they're neglecting is the truck/commercial market -- there probably is an opportunity for someone (Textron? they make the new EV UPS/Fedex trucks) to make an awesome commercial EV platform, maybe with a CNG or LNG generator onboard. Whoever replaces with pickup truck and light commercial truck will have a next-Ford sized business, too)
http://www.npr.org/2012/04/02/149703488/oil-scare-turns-fede... is interesting