Perhaps it would be fairer and more accurate to say that startups that require relatively smaller amount of capital (i.e., software based startups that can use

Perhaps it would be fairer and more accurate to say that startups that require relatively smaller amount of capital (i.e., software based startups that can use Amazon EC2) are killing startups that are much more hardware intensive and thus require more capital, and typically a longer time horizon before success or failure can be declared? Of course, that's not as sexy a headline...