It also means the supply of jobs available to you will greatly increase, as you won't be limited to positions location in the area/areas you can live.

For some reason, so many of these articles and blogposts only factor in the increased supply of applicants, and completely ignore the other side of the coin. I think this will lead to a new equilibrium that's beneficial to both parties.

Companies based in the bay area won't be forced to keep salaries in line with the astronomical cost of living there, while job seekers outside of the bay area who can't or don't want to move there, will now have access to high paying jobs that they previously didn't.