I do think the remark about 5 minute IQ test is a bit arrogant. I am not sure if Paul really said this (haven't read the article) or it was just journalism as usual...
My impression is that there are lots of insecure people who are way overreacting to that comment. He took the sentence "we think the deal we offer is great for the startup companies" and made a geeky joke out of it.
http://news.ycombinator.com/comments?id=21791
It's still hard to tell tone of voice over the Internet, but it sounds like he was serious about the IQ test part.
http://news.ycombinator.com/comments?id=21967
I've had the same reaction as boris when reading the original quote. But what he was talking about was the case where someone turns them down because of the valuation. And I can see Paul's point there, actually.