There is nothing wrong with being the category-defining early-stage investment company, and doing it as a for-profit business that's optimized for good financial outcomes.
I think what some of the insiders (like the OP) and semi-adjacent outsiders (like me) might be feeling a little queasy about is that YC began with a pretty clearly stated goal (in addition to making money) around disrupting the unproductive importance of high-status networks and signaling like elite university educations and to a lot of us (even people who didn't apply like me) that was really inspiring. And to at least some degree, YC is now a high-status network that signals well.
There's nothing uniquely bad about it, it's kind of the default throughout human history, and they are completely transparent about being a for-profit company, but it's also ok to be a little sad that it's not quite as idealistic as it used to be.
"Kiddo, every generation thinks they invented sex and fast music."