I second Dale's comments. I have lived in the area for 16 years and worked in tech the entire time. Most of the younger people that I've seen move to the area want to live in the city, not the suburbs. Many of the older techs who've been here a while have either moved to the city (like me), or have built a life on the peninsula because that's where the jobs started.
Getting to SF from the peninsula is doable, especially with caltrain. Getting to East Bay is a giant PITA.
Keep in mind that the job market is highly competitive. Personally, I wouldn't take a job outside the city, since there are so many opportunities right here. I'm sure many other people, especially the top performers who can take their pick of jobs, have reached the same conclusion.