I know many new college grads who got offers from multiple tier-1 and tier-2 silicon valley software companies in the same range as what I got as a senior engineer with 8 years of experience a few years ago. I'm talking base salary $160K-$180K, $300K equity grant, 10% annual bonus, sign on bonus, relocation...the works.
Not to say that everyone can simply walk in to these jobs (and they shouldn't!), but if a graduating CS major cannot find any decent software job today I'd be more inclined to suspect their skills than the industry itself.
Bay area is expensive for sure but such salary comparisons are always exaggerated. Housing is the only thing that makes a significant difference to the annual budget for a ~22 year old, and even a $20K salary bump is more than enough to cover the difference in rent and other basic monthly expenses. It will almost always be worth it career-wise and financially to work in silicon valley for a few years, especially at the start of your career.
Not to say that everyone can simply walk in to these jobs (and they shouldn't!), but if a graduating CS major cannot find any decent software job today I'd be more inclined to suspect their skills than the industry itself.