Companies do this all the time...they move to a state where they think has greener pastures only to find that there is a lack of high skill workers/employees. While people complain about the cost of living in California, most high skilled and high earning workers still want to live here.
I think this is something most decision makers do all the time if it doesn't relocate them.
On top of the recruiting pool there, they don't factor in that many won't want to move and that those that do, may not be happy about it.
Some people I know moved to TX because homes were cheaper and they had family there... they moved back to SoCal a few years later because they couldn't stand the heat. And while real estate and lack of income tax helps, there are other taxes/bills that eat up that difference (I think TX is 1.8% tax, one of the highest).
There are always tons of variables to consider when you choose where to live... Irvine, Texas or Johns Creek all have pros/cons.