Baloney. Here's a list of the biggest companies with very significant presences or headquarters in Silicon Valley, from Wikipedia. I think you'll find that only one company on this list is solely in the business of "social cloud blog web 2.0"-ness. Silicon Valley has a huge amount of real engineering talent as well as a huge amount of media hype over sexting apps built by a small minority of the tech workers who call the Bay Area home.
But it does move! -- Galileo Galilei