I don't think that YC is claiming to be a VC. Unless I am missing something? everybody knows that 10-20k is not worth much. People apply for something else.
Yes, but the question is whether any YC companies have the capacity to be the next google. I think it is a good question because it really is saying "if you can't find the gems why expect VCs to be able to". Its a people in glass houses throwing stones argument. There may be good counter arguments but it is a very legit question.