I think it is more of an issue that if you live in a coastal city that is alive 24/7, the idea of moving to Kansas is just not very appealing. Goodbye bay. What if I have a sailboat or powerboat? Well the ocean will be far away.
Sure Kansas has lakes - but come on. My "lake" is the Atlantic Ocean. I am 50 miles away from The Bahamas. A muddy little puddle of a lake is just not going to cut it.
And then there is the matter of friends and family. If you have kids, they have friends. They have their school. Uprooting and moving far away is rough.
So there is more to this than a simple decision. Garmin wants to cut costs - which is fine. But they may suffer some brain drain out of all this. I am sure that there are nerds in Kansas that can take up the program and continue it - but they will have to build a new team. The employees in SF most likely found other jobs, or decided to start their own companies - otherwise they could have moved to Kansas simply because they needed to keep the job - and keeping the job was more important than all the other issues related to moving far away.
In the end, I think that the end users of Garmin Connect will not notice a thing.