The entire argument of "There shouldn't be different pay scales based on where you live" is often given by, say someone who lives in Florida. And a rather big hole in that argument is "If you think Florida should make SF money, why don't we just skip both and get someone out of China/India/Russia"
I'm not sure how that counts as a hole in the argument. Sure, get someone out of any country if they can do the job. That's the promise of the public Internet, connecting folks around the world. Seems like that would be a net benefit.