I landed a job in New York City, where I'm currently living at. The city is awesome and my job is fun. But in reality, the Bay Area was my first choice, and it's still dream of mine to be able to land a job over there. I'm in the process of getting more information to further my skills so I can begin actively searching for work over there.
I was doing well in Puerto Rico (earning more money than most people I knew, living close to beach with constantly great weather, all my friends and family living there, etc.) and I'm certainly doing well in New York City. But if I had the chance to move to San Francisco, I wouldn't think twice about it. Maybe I'm wrong, but the Bay Area is kind of like the Mecca for developers and aspiring entrepreneurs like myself.
Like I said, I certainly can't speak for mannicken. I'm sure he has his own reasons, perhaps even similar to my own reasons. But if he's really willing to do it, that should be reason enough, regardless of where he is now.
EDIT: I think that the advantage that moving down there will give me will outweigh the $200.
Depending on your motivations, it could completely defeat the purpose of heading here though.
Also, I generally found while looking for a place on craigslist, that while there are a lot of cheap places listed, they're heavily competed due to rent control. Places with a room for 500-600 will get hundreds and hundreds of responses, and you'll have to do an awkward interview for the room, which is like a combination date/job interview. It will take time to find a room. Nearly everyone I know that has moved to the bay area has crashed on a friend's couch for 2-3 months, or take an expensive, short term sublet.