If you work as a software engineer outside of a handful of cities, you earn much less. E.g. a software engineer working in Tulsa makes a lot less than one working in San Francisco. But if you work remote from Tulsa, you can work for a company in one of the top cities and will make a higher salary, on average than your local peers. I don't think remote workers in the valley make more than their peers - maybe less.
I've worked remote my whole career, and the main reason I do that is I get a substantially higher salary than my local peers because I don't live in the USA.
I've worked remote my whole career, and the main reason I do that is I get a substantially higher salary than my local peers because I don't live in the USA.