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As a developer in New Zealand, I've got to say this is absolutely true. You'd think the distance wouldn't matter, but it really does.

History is full of times and places that were the source of massive cultural and technological progress. The Renaissance in Italy, the Elizabethan Age in Britain, and the tech boom in Silicon Valley. The internet goes some of the way toward making those of us outside California feel like we're a part of the game, but it's a poor substitute for actually being in amongst it.

Yep. I sometimes wonder what my life would have been like if I'd been born in California.
Cabin fever is definitely the major downside of working from home. And it comes up so suddenly. For 2 days you're fine and productive, loving the relative quiet. Then suddenly it's 5 days in, you stink, are starving and you're talking to yourself a lot.