"Paul Graham & Co. take equity at an extremely low valuation.
Because the company is not worth very much when it's only days or weeks old. So?
"watch Justin.tv and you'll see a business in free-fall"
Huh? What makes him say that? Justin.tv has been live for a few weeks now. Free-fall?
"The number of visitors required to have an advertising driven site that is profitable and viable as a business is staggering"
So not true. You don't have to think very hard to come up with examples (dooce.com comes immediately to mind), but what I really want to suggest is that the post author read The Long Tail. You do not need a huge, mainstream, "staggering" audience to make good money, even with Google AdSense.
"... says another start-up was sold making it seem like a huge deal that closed. Except it's not. That other start-up is called Kiko and it sold for $258,000 on eBay to Tucows who will surely find it was a waste of their own money."
Tucows thinks otherwise, and seems to have pretty good reasoning. See
http://blog.tucows.com/blog/_archives/2006/9/5/2297315.html
where they say: "What was the value to Tucows of the time and the certainty? ... What was the value of having it be good for sure? Even if we threw it away in six months (not that we plan to do that)? What I can tell you for certain (and you'll be able to hear more details in an upcoming podcast) is that it was more than we paid!"
"Get Duped. You get 5 minutes to decide."
You should decide when you apply. If you don't know by the time you get the phone call, that's your fault, blogga.
"Ruin Your Health."
If your health is ruined by Lean Cuisine, then you would have died in college when you were subsisting on Top Ramen.
"Hurt your Family."
No one is forcing you to leave your pregnant wife. Hell, no one is even encouraging that.
"Become Pinocchio ... You pretend secrecy is important when you need to cover up a bomb or lack of actual interest from an acquirer."
That would be no different than any other company, except that this post's "evidence" that YC does this is scant and misrepresents the facts.
Blogga, PLEASE.