They could employ a lot more people and make a lot more games if they moved their company about a few hundred miles eastward. Or hell, just out of the Bay area and into a smaller community.
I'm not certain about the demographics and areas in the States, so can only talk from my experience. I'm currently living in the most densely populated and most expensive part of South Africa to own a business in. It costs a good deal more to have a company here in comparison to other places around the country - but my company (
www.burn.co.za ) is directly linked to the building industry, and this area is where we have the highest concentration of architects and property developers. The truth is that while we could move our company to a cheaper area we wouldn't have as much stable work.
I assume that DF is in a similar situation. Broken Age is just one of their projects. From what I can see they run about 5 or so projects at the same time. I would probably say that 4 of those projects are dependant on their proximity to clients, producers, and contacts.
Relocating a company of 60/70 people is a mammoth task, especially when its far enough for people to actually have to relocate their houses and families. It would cost them a small fortune, and they may end up with even less work in an already super competitive industry.
Their location also gives them access to talent who move TO the bay area to find work.
There certainly are cons to having a company in an 'expensive' place, but more often than not the pro's outweigh them by far. DF seems fairly unique in that they have employees who measure their time at the company in terms of years and not just project to project. They must be doing something right if they have managed to survive for as long as they have.
I'm personally quite excited to see how they approach ACT 2 now that they have less money and an existing tool chain. It already looks like they are embracing their limitations (having a more subdued 'art jam'), and hopefully they will beef up the game play length with puzzles instead of cut scenes.