Yeah, I appreciated the transparency of it too. The offer I got was okay compared to market rates here, so I do think it's pretty fair.
I guess I just find it a bit weird that your value to the company is so dependent on location that it can vary from 100% down to ~20% of the base SF salary. People living in SF _chose_ to live there despite the absurd rents, and it's not like that changes anything for a remote company.