[Jensson]

No it doesn't. When you say "bottom of the barrel devs on the cheap" people would assume you pay American prices, so $70k a year or so. Location matters a lot.

And when making estimates you need a real value, so taking a real location where we know what cheap developers costs helps making the estimate more realistic.

[yunohn]

You are aware that there are innumerable developing (colonised) countries that are low-cost, relative to developed (colonising) countries right? India is only one of them.

[Jensson]

Right, he could have used many other examples, but he took one which he knew what the developers are paid in and went with it. What is wrong with that? You need to use some number for your example. If he knew a location with cheaper developers he would have used it instead.