I took it to mean: it's better to pay an EU salary than a Bay Area salary if the SWE is unenthusiastic / an average performer. i.e. "Both EU and Bay Area have SWE who will ship code. Only pay Bay Area salaries for those who go above and beyond shipping code"
I use plenty of paid software developed in the Bay Area that I wouldn't even use for free if I had a choice in the matter. The reason for a lot of successful software companies in the Bay Area has nothing to do with the people. It's disposable cash willing to throw money at an idea with a 1/500 chance of working out. As already seen, cash is running out for a lot of startups and they won't be getting another round of funding. That will lead to wages significantly dropping. We don't see the same in Europe where the wages were never hyperinflated. Wages continue to increase albeit at a slow pace.
