@Postmodern got it right: "For those that need the literal meaning of the point made, I believe it to be: “NYC and SV have the largest number of opportunities for talented and ambitious people who aspire to the most traditional definition of success. But if he had said that no one would pay attention.”
nor would we be having this conversation. In my opinion, theil mostly got it right. (by way of disclosure, I worked for silicon valley firm for 10 years, projects on wall st for 30). If you want to challenge yourself against the best and brightest, collaborate with people from all over the world, work on leading-edge, world-class, large scale projects, NYC and Silicon Valley is where you go. Sure, there are notable exceptions, and yes, startups, in attempt to create a long-term cost advantage, may locate in osh kosh. but what happens if things don’t work out? do you have to move and pull your family out of the community and schools?
not to say there aren’t drop-dead, brilliant people in say little rock and charleston (and there are, I’ve worked with some), they’ve obviously made a different life choice.