I like this rebuttal, a lot. I will say, having lived in California, Nevada, New Mexico, and Kentucky (not in that order) has made me realize this: culture counts for a lot, the internet is prolific, and calling any large American city a "technological backwater" is a farce.

A lot of people = a diversity of ideas = culture = innovation. New York has a lot of people and a lot of culture, quite a bit of innovation has come out of that city; California (as a whole, not just the Valley, I live in SD right now) has a lot of people and a lot of culture. The same can be said for Atlanta, Dallas, etc...

I will note this difference, though: much of California's culture embraces the leading edge more than it's east coast counterparts - computers and the internet is the leading edge; the internet is an agent of social reform and change, technology (computers) is the vessel through which widespread social reticulation is delivered. Therefore, I do not think New York is a technological backwater; but I do think the people in California/Portland/Seattle can be more progressive and this is why the west coast is carrying the torch.

Small disclaimer: I've been to New York but I haven't lived there, my conclusion is derived much more from intuition than actual experience.