The argument I've heard is that it's the "soul" of the industry that's being threatened, rather than the industry itself, and the fear is that SF will basically end up being "software hollywood".
I would think that SF is still a fairly good place if you want start tech companies and SV is fairly good if you want to work for one with substance. In comparison LA doesn't seem to be the natural choice if you want to make movies nor if you want to be in one with substance. But this is mostly speculation.
Interesting. I see you analogy. I read that assuming you meant the next Hollywood in the sense that its the nexus of where people move to make it big and be cool in their industry, regardless of futility. Funny how it can be read both ways.
