>could they decide to redirect their money toward smaller interests, increasing the availability of capital for 'the rest of us'?

Probably not. That money is pretty much stuck there, as VC is an illiquid investment. Money invested in Groupon isn't going to get paid back until they have a "liquidity event", like being bought or IPOing, or until you can sell it to another investor. However, it's possible a larger fraction of new VC investments could be targeted at "the rest of us".