Great post, as usual, there is one point though - assuming that all the best will move to the startup hubs is like efficient markets hypothesis i.e. not really. They would move in a rational world but there are many seemingly irrational reasons that you can find world class people in obscure places anywhere in the world and, moreover, they are content to stay there. I am talking from personal experience, in my previous (vertical) search startup my chief programmer was world-class and had results to prove it, has since produced another world-class (Facebook) app and has not set foot in US ever. Similarly in my current search startup, I have some really great young kids. So the moral is that sure, the ratio of world class people is higher in startup hubs, but the rest of the world is so much bigger :) that many more are still out there ...