Pain is constructive in the right dose, and it's also risky since you can lose trust if delivered incorrectly. It requires maturity to give honest feedback and recognize that it might be biased since we have a lot of limitations on how we perceive others.
The most brilliant programmer I've ever worked with wrote hardly comprehensible code since they could understand other's code easily, so they didn't feel the need to write readable code because, in their word, "What do you mean you don't understand it? It compiles, it runs, it works, you don't need more than that".
(I'll take a stab at this, but my knowledge is rather limited on this one so take it with a grain of salt).
Markets are a mix of locality. Some markets have more global reach than others.
The car mechanic example is a mostly local one, with the car parts being shipped from somewhere else, maybe in the same country or outside, which might take some influence on the price. Operation cost is local (rent, labor, other supplies) and customers are local, so the prices on mechanic services are stable and location based.
Software engineering has more global reach. It can be done remotely, but the labor is a mix of local and global (learning online, but also local universities, conferences, meetups), which justifies the pay gap between a local to the company (excluding timezone and culture differences, which makes the process and supply size smaller). It's also hard to evaluate the quality of work (see difficulties in hiring, analyzing performance).
The strongest argument I see is the cost of comfort (made somewhere else on this thread). Wages are largely decided on what other companies are paying and remote is a fairly new thing, so it's still highly unstable.
Pricing on products are also notoriously difficult. Some apps have prices adjusted by region.
I only have one friend who was kidnapped and having a concealed weapon wouldn't have helped him. He had three guys pointing weapons at him before he even realized he was being kidnapped.
The further you steer dev environments from production, the more you'll have these kinds of issues.
Would you mind expanding on their explanation? The way you described doesn't sound like an argument at all.