[devil's advocate] YC could end up hurting all the founders. YC is selling a message that it's OK not to worry about a business model or revenue (or profit!),

[devil's advocate] YC could end up hurting all the founders. YC is selling a message that it's OK not to worry about a business model or revenue (or profit!), and that may turn out to be horrendous advice. In this case YC is partly responsible for the creation of a new web 2.0 no-revenue-required bubble. So what you call "knocking smart energetic people" may just be a highly needed reality check, to keep people from dropping out of college and investing their savings and future into doomed ventures. [/devil's advocate]