[LeoSolaris]

SWE's actually build the systems that their businesses use to do business, and are paid accordingly. Without them, companies would not be as competitive. IT centered companies in particular would go out of business. Software businesses literally only exist to support software engineers, much like architecture firms exist solely for supporting architects. That is why good architects make a lot of money and why good software engineers make a lot of money.

Hardware based businesses, like building bridges, are paying engineers for designs, not fully functional products. You're comparing apples to oranges in comparing mechanical or electrical engineering to software engineering. In hardware businesses that do not directly profit from software, the pay for a software engineer is more in line with other engineers.

Top software talent will always command a major premium and will be required by software companies. But otherwise yes, it is entirely possible that SV talent will see a 10%-15% drop in pay to work remotely somewhere cheaper to live.