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A less drastic version of this, if you are in the US, is to do remote work from a thinly-populated rural state with a low cost of living, and ideally with lower state taxes.
But the problem with that is that you have to live in rural America.
I've been thinking about exactly this. The town where I live is on Kiplinger's top ten best (American) towns for cheapskates, and I've researched the cost of living and such, and it'd be easy to live comfortably on $2000/month (or $1000 or less, if I didn't have student loans to pay). It helps that this town tanked the recession rather well and is constantly growing, so anyone more competent than me can probably find something to exploit for living expenses.
But the culture, the wildlife, the weather, and the logistics of traveling anywhere at all (I'm at least two miles from the nearest sidewalk that isn't driveway-to-porch) are... a bit troubling. I've been seriously researching and comparing here to places like the Bay Area lately, since I really need to change something soon, and I'm still not reasonably sure of what that will be.
I'm not having much trouble living in the Bay Area on <$2000/mo, so I really doubt it's worth living somewhere without an Exploratorium
You mean <$2000/mo?
Gevalt. Edited.
$1000/month is doable even in a relatively expensive place like Boston.