I agree with the diagnosis, but there's something important that's omitted here: the point of a startup is to create the type of large business that PG is advis

I agree with the diagnosis, but there's something important that's omitted here: the point of a startup is to create the type of large business that PG is advising against joining. The entire point of a startup is exponential growth. A company that stays small is generally derided as a "lifestyle business" and Silicon Valley investors seemingly have absolutely no interest in funding that sort venture, even if it's more sustainable for most people.