Even though the Denver metro has gone up the last couple years, it's still a bargain if you're a software dev in terms of cost vs. what you get vs. what you'll make.
You can buy a nice, < 15 year old single family home in the burbs for $250k. That same house would be 3x - 4x that in any of the coastal "tech cities".
(That goes up the closer to the foothills/mountains you go. Stay east of I-25 and it's completely true, west of I-25 and you're going toward the $350k range).
A Sr. Engineer is going to start at about $130k, a mid-level probably just north of $100k. Unless you go to work for one of the big guys (Google, Oracle, HP, Twitter, etc) in which case it's actually more.
The city, area, and people are wonderful. Denver is *like* a big city, but it's really not at all - the entire metro area has maybe 1.5m people (I think Denver proper is at about 700k). Great music scene, great restaurants, museums, etc, etc. And if you're into the outdoors at all, this is the place to be.
As a transplant from Washington D.C. (been here 8 years) I can tell you you'd have a very hard time dragging me away.
Basically, you'll get paid almost as much as you would on the coasts, and your cost of living is half. No, it's not as cheap as but it's still a great bargain for a real metro IMHO.