You aren't missing anything, but this is not exactly news - the Bay Area is one of the most expensive places in the US, so its amenities are largely for those who can afford the rent. And, ultimately, most of its benefits are simply reflected in higher real-estate values for landowners. Lower zoning regulations would help, of course - as would getting rid of the insanity known as Prop 13.
The Bay Area is praised for having a large tech sector, and a history of supporting counter-cultural and otherwise non-normative people. So right away you get lots of geek subcultures (broadly defined), some of which overlap with LW-interests. There might be other overlaps too.
Outside of those factors, I'm quite certain that the Bay Area (or California in general) is not being praised as a model of good governance on things like housing, land use, budgeting, or doing anything in less than three decades, four referendums and five judicial opinions! Within ...
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