Big Tech was established when much of that area was literally little bits separated by fields and farmland.
I think our living spaces are more important than industry, if we need more housing for Googlers etc. well, there's tons of room in Cali. There are even many areas amenable to more density, it's just not SF or Palo Alto.
I'll bet that in Oakland it's much more possible to build semi-high buildings and fairly dense, modern 4 story buildings for the middle class, it's just that fewer people want to live there.
I wonder if Apple and Google get together and bought a large plot of land south of Morgan Hill, they could build a mini city to house 500K people and frankly run the gauntlet of whatever they wanted in terms of setting the rules, and there are at least 500K migrants who'd be happy to live there.
Imagine 'Facebook Campus' but now, your home as well. What's Orwellian to you and I would probably be fine for others. And of course, less cynically, it wouldn't need to be like that either.