Sure, that may be what AJAX and Web 2.0 are about. But isn't the point of a web site to provide some service? In the case of Lala, the service is to facilitate CD trading (or something along those lines). To best provide that service, do they really need Web 2.0 and AJAX? If they want to accomodate users of mobile devices (and wouldn't they? every visitor is a potential customer), then they should provide a working interface for those users.
On the other hand, if they think AJAX is the best way to provide their service, that's up to them... it's their web site. I think the author really means that they should be designing for a wider audience if they want to appease as many visitors as possible. Whether that demographic is important enough to bother with is another question.
I agree that you should know your target audience, but I think it's also a cost-benefit issue. I'm all for making your page accessible to as many people as possible, but in many cases it's not practical to cater to the 3 hits per month that for some reason still use Netscape 4.x.
I disagree with the article that you might need to "dig out some old favorites like @import" for older browsers. As discussed in "To Hell With Bad Browsers" ( http://www.alistapart.com/articles/tohell ), you shouldn't have to deal with people who refuse to use a modern browser. (Hmm that was 6 years ago now... am I old?)
I agree with the article that it's illogical to load an entire page with AJAX and not have a non-javascript option, but I think the whole 3-level scheme is overkill in some cases. I think it comes back to knowing your audience, and designing your site so that they will be able to use it how they want.
I agree the site is way over the top and disconcerting. When I loaded the main page it just felt like they were trying way too hard to sell me something. It looks more like an ad for the 4th of July sale at Macy's than a startup funder. Either that or an ad for Citizen's bank, I cant' decide. It's a stark contrast with the YC site, where you have to read a bit to figure out what's going on. I don't think they need to be worried about getting people to apply, they're giving out free money after all...
The book analogy falls apart here, because only a limited number of people are accepted to YC or TS, while a (practically) unlimited number of people can read Harry Potter. The existence of two YC-like programs doesn't significantly decrease the amount of interest per program, especially since you can apply to both. It does, however, significantly increase (approx double) the number of entrepreneurs funded, and the competition may encourage YC to improve its program further.
As for your book example comment, if somebody wrote Henry Potter, I imagine lots of people would read it. The story in each new Harry Potter book isn't new and exciting either... it's the same story, new details. Also, just because Harry Potter was the most popular series with that story line doesn't mean there's no demand for other similar books.
On the other hand, if they think AJAX is the best way to provide their service, that's up to them... it's their web site. I think the author really means that they should be designing for a wider audience if they want to appease as many visitors as possible. Whether that demographic is important enough to bother with is another question.