I have not found that SF is the "home market" for Davis. For OCI purposes, I felt like Davis students were treated equally by SF and LA firms. That is, it wasn't really a case of SF firms being more likely than LA firms to hire Davis students. So it's not surprising that someone said SF firms considered Davis and UW students on the same level.
The difference lies in how many SF firms do OCI at UW. Literally almost every single firm in SF (other than really small ones) interviews at Davis OCI. I don't think most SF firms interview at UW...I'm sure a ton do, but surely a lot SF firms that are able to drive an hour to Davis are not willing to take the flight to UW.
As for the comment "UW has a way better reputation than Davis outside of CA" - there is no way to prove or disprove this...I just don't feel like that's the case at all.
(Rankings, Profiles, Tuition, Student Life, . . . )