I don't think "most likely outcome" is ever a good thing to cite. There are some ridiculously unprepared people doing crazy idea startups.
It's like saying "Most actors end up working in a cafe and die poor". That isn't because it's risky to try to become an actor, it's because so many untalented people want to become actors.
It's obviously up to you what you fund, and how you spin aquihires. I personally find things like Loopt to be a big signal to hackers not to bother trying to become a good hacker or make a good product. Which is depressing and demoralising for those who focus on those things.
The negativity comes from the fact that more and more "startups" are just being 'bought' and shutdown.
In the past, I think people applying to YC would have thought they could become the next Google. Now, it's more likely their startup will be 'aquihired' and they'll end up working at Facebook or Google. It's a glorified jobs board.
With this announcement, it's basically an admission that the idea never mattered. Posterous didn't matter, Auctomatic didn't matter, Loopt didn't matter, etherpad didn't matter. The list goes on and on. If you know the right people and jump through the right hoops you get acquihired regardless. The "product" is just a glorified resume for your team. The users who used your product are just kicked by the wayside. They served their purpose.
I don't think that sits well with most people.
Personally, I'd like to see a complete refocus on companies that actually innovate or god forbid make money.
It's like saying "Most actors end up working in a cafe and die poor". That isn't because it's risky to try to become an actor, it's because so many untalented people want to become actors.
It's obviously up to you what you fund, and how you spin aquihires. I personally find things like Loopt to be a big signal to hackers not to bother trying to become a good hacker or make a good product. Which is depressing and demoralising for those who focus on those things.