I don't know. If I were young and single and fresh out of college with a six figure job offer at a San Francisco company, I would consider this, at least until I got my footing.
Sure, it might suck, but I could put up with a lot of suck in order to be able to pocket that much spare cash.
Six figures only sound good if you don't know what the costs of living are.
Essentially, you don't have much buying power so you could move somewhere else, earn less and still have a higher standard of living.
Unless you're one of the income millionaires or old money, the Valley is not a fun place. It's fueled by the ambition of young people who throw a few years away hoping for their gold rush.
It also depends on what you like to do for fun. It's cheaper for me to go to Universal every weekend with my pass than to fly to Universal every weekend.
All the hate LA gets is warranted but I can also just do whatever I want whenever I want without much planning and I don't make that much money, yet at least. Lots of opportunities here, some of which have gotten me to where I am and I only have a HS degree making a smidge less than someone with a bachelor's.
I'm very far away from "young," but I was once. Even in my early 20s, this would have seemed terrible. Sure, you have access to an interesting city, but you have no space for anything you can call your own. Even a rented studio anywhere else gives you somewhere to have a home you can call yours.
Most of the people living in these pods are startup founders, so it makes sense for them to live in shitty pods next to their potential clients and investors.