I don't think the author is advocating that founders take on a ton of of personal debt, just that historically it was a filtering function that is now absent. I

I don't think the author is advocating that founders take on a ton of of personal debt, just that historically it was a filtering function that is now absent. I would imagine that this filter function can be replaced by something else that does not also weed out people without any safety net. The point is valid - startups are a risk, and so if all the risk is removed, it will increase the number of people who are coming to YC for status vs. coming because they believe in their idea. As good at interviewing as the YC partners may be, interviewing is no substitute for the harsh reality and incentives imposed by taking a great risk.