Detroit gets so much bad press though. I'm not sure a lot of people want to buy cheap property there and risk not having a police force that is able to protect them from crime. People don't usually rush to buy property in the ghetto areas of big cities and Detroit's national press gives off the impression that the whole city is a blighted, dying ghetto with an inadequate police force. I think you'll sooner see telecommuters moving into moderate sized cities near quiet farming communities than you'll see them moving to the rust belt, and within the Midwest why not move to places like Indiana or Ohio that don't have the same reputation of being corrupt and run down?
I mean no offense to Michigan, I've got family who lives in the area and the state has some real beauty, but I don't think most of America hears anything good about the place.
I think part of the issue is entrepreneurs want to be close to the source of their money, or to future potential financiers. It's probably easier to find a venture capitalist to fund your ideas when you're in a financial hub and it's probably much easier to network in general. A face to face meeting simply gives off a better impression than e-mail, phone, or even Skype, and you're more likely to rub elbows with influential people if you live in the same geographical area as them.