Well, if you're so inclined you could use part of the 500k to bootstrap another projcet and continue your happy startup existence only with less Ramen. (Unless you just really like Ramen, of course).
This is true, but a live one in the hand may be worth more than $500K in the bank. It all depends on your own estimation of the probability of eventual success, and your ability to accurately make that estimation in the first place.
Exactly - at least for me. Emotion has to enter into it because it's about whether you're ready to move on when the money makes it a fairly close decision like this.