I think they do. My read was that they're trying to illustrate that there is more that goes into determining what a crime is and what the punishment for a crime

I think they do. My read was that they're trying to illustrate that there is more that goes into determining what a crime is and what the punishment for a crime should be than the impact it has on a company's market value. And I don't think there's a suggestion that every startup founder whose company fails should be jailed - only that if there's some kind of serious wrongdoing, like fraud, involved. Unfortunately with the popularity of "fake it 'til you make it" it's easy for people cross the line, knowingly or unknowingly.