_should_ being the identifying word here. Good luck raising money under any of the recommended terms this article points out. Any VC would walk away, as it betrays their fiduciary responsibility as an equity firm.
What I meant was: if you're raising seed capital, it's very hard, if not impossible, to demand 1X or non-PP for investment funds, because you have zero leverage. Your business model isn't proven, your product is likely conceptual, you're just going on the idea. Very high risk for a VC, so they'll want protection.
If we're talking about Series B or C, that's a whole different ballgame.
Point is, traction and growth are very sexy for a VC.