Many people have told me that it's a good idea to just jump in head first and buy a crappy house for an outrageous price.
However, I want to look for an alternative option. Cities change and in 10 years like you say, tech can go elsewhere. Think of detroit when the car companies moved out. My supposed $1mil house would then be worth it's real value of $40k. Right now there are some big cities in texas that are REALLY booming and expanding with tech. In some cases there's no tax and there's always tons of cheap land.
In 10 years an awful lot can change. The dotcom era is over and there's no guarantee that the bay area will continue to hold it's value for any longer than the companies stay here. Anything from a company leaving to a big earthquake could change things drastically. Buying a crappy house at super inflated prices to me is like buying stock when it's at it's highest.
Like I said, I would rather look for an alternative that isn't such an expensive risk. Probably I'll buy something as far out as I can reach with a daily commute. At least then I could get a few acre's of land and a house that reflects the price more accurately.