With all the college kids and alternative people I would think it would be better. What is un-friendly there?
Oh, for playing live it is definitely better. You actually get paid! In L.A. there are so many bands willing to play for free, to get exposure, or doing showcases for record company talent scouts or management people, that you have to do private affairs to make $. But if you want to become, or remain, pro you have to live here, for the same reason actors do. It's where the business is done. I've gotten work on soundtracks, etc., just from being in close proximity to the people who do the hiring. You're not going to get the call if you live in Berekely! There's somebody else just as good who lives 15 minutes from the studio. If there is an audition for road work, you're not going to know about it if you're not here. Plus, you know, networking with everyone you know, hustling for work. When McCartney's drummer is not on the road with Paul, he does session work and teaches.
In addition, record company people have a somewhat negative attitude towards the Bay Area; I think it has to do with them feeling like they can't control the "talent" up North, that they won't follow orders, etc. So bands are expected to move down here (the band is often rented a small tract house in the San Fernando Valley to live in while the album is being recorded, the rent to which is taken out of the first accounting statement after the album escapes---old joke. By the way, almost NO ONE ever sees a royalty check. EVERYTHING is charged to the band, from the pressing of CD's, the making of promotional videos---even the promo CD's that are sent to radio stations, advertising.....everything you can think of, and some you can't) to be under the watchful eye of the master, but also to be close to the recording studios to which they are given to-be-paid-for-later use of (be sure to have your lawyer look over the contract real, REAL carefully, fellas. And then have another lawyer keep an eye on your lawyer).
An insight into record company people, a true story as told by Rick Nielson of Cheap Trick: A honcho comes into a recording session to let the band know the company is behind them (and to check on the progress of the album!), and says "Let me buy you guys dinner". When the band gets the accounting for the session, sure enough, the dinner is charged to the band. They are utterly shameless, taking credit for every success, but blame for no failure. It turns some perfectly normal people into the most cynical human beings you can imagine. I did a session with Emitt Rhodes, an unbelievably talent. He recorded his first 1971 album by himself, in his home (but professional quality) studio, writing every song, playing every instrument, and singing every vocal, and then doing the mix. He delivered it completed to one of the majors, and it did very well. Emitt was hailed as "The one-man Beatles", and it received better reviews than McCartney's first solo album. Emitt had spent a couple of years making it, but when it was time to record the follow-up, the company expected it in six months. Emitt had, unfortunately, agreed to that (what WAS he thinking?) in writing (no lawyer), and when he didn't deliver it on time, was sued by the company for breach of contract. He finally finished the second album, but to punish him the company did no promotion---no free lunches, dinners, or vacations to radio station programmers; no promotional copies of the album and single were sent out, no advertising, nothing. And no tour support---it costs money to tour, the money provided up front by the company, to be deducted from the mythical royalty payments. They buried it, and the third. Emitt has never seen a dime in royalties, for anything.
When an album stiffs, the band goes back home. If the album succeeds, and the band's lawyer doesn't disappear with the money, the band is locked into the L.A. money-go-round. The best songwriters, singers, and musicians I've known have not been willing to pay the price to their mental health, not to mention their souls, so become weekend warriors, working a day job, playing for their love of music. Now, if they would just get better Hi-Fi's! Musician's, in general, have the worst systems of everybody!! But the best record collections!!!