As a theoretical fairness argument, sure. (Assuming you're not delivering a local service.) In practice though you either pay at least somewhat higher salaries in higher cost areas--which probably don't actually fully cover cost of living differential--or you accept that you're going to have trouble hiring good talent in those areas.

Location is also not really a lifestyle choice in the vein of driving an older car. People have partners, family obligations, etc. in area. It's often not as simple as packing up and moving.