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SquirrelInHell comments on Secret Rationality Base in Europe - Less Wrong Discussion
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Acknowledged, but you are comparing only to famous and expensive cities.
So to make the ranking more fair - e.g. I've been living in Kraków which is more than 40% cheaper than Berlin in every aspect (though I'm not recommending it for a rationality hub) http://www.numbeo.com/cost-of-living/compare_cities.jsp?country1=Germany&country2=Poland&city1=Berlin&city2=Krakow+%28Cracow%29
And I'll be going on a 3-month vacation on Malta, which is also visibly cheaper: http://www.numbeo.com/cost-of-living/compare_cities.jsp?country1=Germany&country2=Malta&city1=Berlin&city2=Birkirkara
A lot of the people on LW are programmers and thus want to be employeed by software companies. Those generally exist in big cities. Big cities also tend to draw a lot of diverse ideas.
I can talk to someone in Berkely about Circling/Authentic Relating because there are Circling Events in Berlin and there are Circling/Authentic events in Berkely.
I haven't checked but I wouldn't expect to find Circling in Kraków or Malta.
Malta happens to have some interesting properties but I would guess that it would take significant financial resources to build something there.