I know this is more anecdata, but I'm from Ohio and worked on a joint project with a couple of New York devs at #{famous company}. They were very good, and I learned a lot from them, but I could definitely hold my own with them technically (as could another senior dev from my company). We're both family men in the Midwest with no desire to move. Even if you offered me $350,000 or whatever I'm still staying here. But I would obviously take a remote job with #{famous company} if it paid 60-70% of that and I felt like I wouldn't be a second-class citizen as a remote dev.
Chiming in as a Midwest engineering manager here (Michigan). There's no lack of talent in the Midwest, although it's certainly a different calculus to try and match hiring to the supply/demand of engineers here and not everyone does so appropriately.
