Right, it's a combo of things. First, Dave took back over as inventory manager or whatever, and stopped hoarding/trickling out the rare stuff, instead they kind of dumped it all and now when you see stuff (except JW Lees! hurray!) it's priced closer to what you'd expect elsewhere. And, as you mentioned, the general proliferation of places means there's less limited stuff to go around, and I think the bar for what we count as "special" has increased too. But at least they're virtually guaranteed to have something great on tap (even if it's only Death and Taxes or Blind Pig).
As for the general city vs. east bay thing, I dunno, man. The city has the advantage of being more compact and transit-friendly, that's for sure, but other than Cellarmaker are there any breweries worth a damn? I'd put Cleophus Quealy at the 2nd best brewery in the city, that's bleak. Even if you include the peninsula, you have, what, Alpha Acid? Anything else? I haven't checked out those new bars, and the food is going to be better just about anywhere, but unless things have changed a lot I find that hard to defend.