Sounds exciting, but the reality is harsh:

http://www.climate-zone.com/climate/united-states/michigan/d...

http://www.climate-zone.com/climate/united-states/california...

http://www.freep.com/article/20121228/NEWS01/312280175/Detro...

The Bay Area is Magic: (eg PARC, Stanford, and Berkeley)

http://boingboing.net/2012/08/09/kottke.html

http://www.growingbusiness.co.uk/the-intangible-magic-of-sil...

http://www.techinasia.com/magical-silicon-valley-effect/

Sounds like a ponzi scheme. Get a lot of big name investors to put money into Detroit, providing social proof, then pump it up with hype, hoping lower-profile money follows. Then exit. I see no fundamental reasons why Detroit should be a major city. Strategic location? No. Hub of its region? No, Chicago (which is also in decline). Competent city leaders? Not at all. Attractive climate? No. Safe? No. Historically significant commercial city? No, it was the home of the auto industry for about one generation; while NYC did recover strongly from a low point in the 70s, it had been a historically important commercial hub and trading post since the 1600s.

What is the appeal other than low cost of living (which I can get in many other parts of the country that offer better living conditions)?

The reality is that its not really that simple. I would issue you the challenge to come visit. Detroit is riskier, but the opportunity is much larger.