> People are already incentivized to live far from their jobs because of HCOL near their workplaces.

Yes, and now they would be even more incentivized.

> Also, it would be nice if people's choices were as binary as this line of thinking seems to suggest.

What's your point?

> It seems to me that many people would rather have a shorter commute either way.

Yes. But if further incentivized to have a longer commute, they would (in aggregate).