I agree with what you're saying, but I'd be curious to know what the response to the program would be if terms started to move towards the funders and away from the founders. YC gets a lot of attention from their current terms, which means they have more choice and can be picky about who they fund. If they start asking for more equity or offering less money, I'm assuming they'll lose some of that choice. How much they'd lose is anyone's guess. Startups as a collective "product" certainly don't fit nicely on a supply/demand chart. It will be interesting as the years pass to see if the terms are adjusted and how the quality and/or quantity of funded companies moves with those adjustments.