Being rich in this case wouldn't be a reward for his attitude, but for solving the problem of people who want secure, usable backup systems.
I'm not saying being rich would entitle him to any particular behaviour; they're orthogonal things.
About the hypothetical waitress, either she could find another job to pay for college, or otherwise her ability to go to college depends on cperciva getting rich.
There are other examples where you could argue that raw capitalism may not be in the general interest. Think, for example, of real state; that's more of a zero sum game. In my area, rich foreign people are buying most of the real estate for summer houses they'll visit once every other year or so, while locals have a hard time to find a first accomodation due to pumped prices. Many people have to migrate to save up for a house here. Since the utility of that real estate is way lower for the foreign rich than for the local poor, I claim that in this case raw capitalism is reducing overall value.
I would want this guy making a few million, if he doesn't steal them. His waitressers and waiters can quit anytime if their alternatives are overall better.
(Kudos for being able to imagine a Paris Hilton with brains.)
"The reason is that the most likely outcome is just to the right of the step."
"So in the most common (and most commonly hoped for) good outcome [...]"
Isn't the omission of good in the first paragraph a lapsus, i.e., do you mean most founders think success is the most likely outcome? Or do you mean founders should ignore the possibility of failure for the purposes of making these decisions about stock?
I know you are well intentioned, but if I'm full of it I'd rather someone told me, preferrably in a respectful but blunt way. I'll form my own opinion anyway.
I know I took criticism personally and reacted very badly once or twice in the past, so I see your point. But I realised I was being a baby and grew from the experience. No speech on humility can make you humble. At best, it will convince you you should be humble, and maybe by acting humble some of it will sink in and stick. Real humility comes from realising your mistakes. [Edit:] That's painful at first, but necessary to get over your ego.
[PS: Sorry, I drifted into replying to other comments of yours, and the end result may be confusing.]
My first reaction was: I see this more as donationware open source. But then again, if you feel your technology would be hard to replicate, and if the cost is on the S3 ballpark, I'm in.
It's not only time but respect too. The ability of YC to connect startups with investors and acquirers depends on its ability and commitment to select only the most promising teams. Anything that may look like a deviation from that would harm the YC brand.
Waiving the cash suggests that you have your priorities right, but if YC believes in you, that money serves you both better in your pocket than in YC's, don't you think?
Were these people questioning your ability to pull off the technical challenges? If they were questioning the business potential of the idea, your impressive credentials in math and programming are besides the point.
This would be off-topic in this thread, but definitely not in this forum. If you make a new top level post requesting feedback, more people will be able to contribute and benefit from it.
A crucial part of making something people want is finding out what people want. Intelligence is an advantage, of course, but is no guarantee. For one thing, it may make it harder for you to understand the needs of the less gifted and educated.