I like the idea of replacing traditional corporations, and YC is certainly good at what they do, but how much of this success is just a result of internet start

I like the idea of replacing traditional corporations, and YC is certainly good at what they do, but how much of this success is just a result of internet startups having no physical products? I'd like to see more places like Incubation Station come about - http://www.theincubationstation.com http://www.theincubationstation.com - or hear about similar incubators for consumer products if anyone knows any.