It's funny, i had a discussion about this unrelated to the Google stuff tonight.
It's definitely a cultural bubble (as is california in general, to generalize for a second).
Whether you believe the bubble is closed and repressive or open and progressive depends on your point of view.
IE California considers itself open and progressive, and cultural bubbles in the US as closed and repressive. Those cultural bubbles consider California closed and repressive, and themselves open and progressive.
If you want to see true evil in the world, look at people trying to do good in SF. "The road to hell is paved with good intentions" has never been so apt.
You make the Bay Area sound like a somewhat dystopian, closed and repressive place. Is it really like that?