James Fallows had an interesting (and kind of scary) observation in his piece on Chinese manufacturing in The Atlantic this month: in a truly flat world, we'll have the global distribution of income replicated in each country. We're a very long way from that, but the article you cite is one step in that direction. So sure, if you're one of the highly skilled elites, whether you're in the US or in India, you'll command a high wage. The ones in big trouble, at least in Fallows/Friedman's world view, are those further down the wage curve.

A couple of years ago I read about a really interesting (but bizarre) solution for the time zone and turnover problems. A company called SeaCode was planning to refurbish an old cruise ship, fill it with programmers from India, and park it in international waters 3 miles off the coast of LA. The people on board would work crazy hours (since there wouldn't be much to compete for their attention) for 6 month stints and would receive huge (by their local standards) paychecks at the end. Clients could make quick visits by helicopter. The time zone thing must be a big deal if people are willing to go to such lengths to get around it. Check it out.