There is a big difference between PG and Arrington: PG states that you should be working for yourself. YC is set up to allow entrepreneurs to make money if they work hard and a big part of that is allowing a company to grow before being required to take VC money - allowing for a better valuation.

Sleeping under your desk with .05% equity? Probably a bad investment.

Sleeping under your desk for 45% equity? Well, roll the dice. At least you will get paid if it works.