For full disclosure, I'm a young entrepreneur (<25), run a company that was started a few months after curebit (my cofounder applied and interviewed for the same YC class with a different idea), have raised pretty close to what curebit has raised, and am also a 500startups-funded company.
I'd just like to take a minute to hope that a couple of screw ups by others won't put companies like ours at a disadvantage. It makes me sad to think that "how old are you guys" is one of the first questions someone would ask, since I'm not sure physical age has anything to do with how people react to different situations. I'd sure like to think that if I screwed up people would chalk it up to me being me and not my generation.
I also hope people realize the big mouth investor with no taste (especially in what he wears ;) isn't the only person vetting 500startup companies. He has a whole investment team. Yes, Dave does pick a lot of the 500s companies himself (he was our biggest advocate), but the entire 500s team has a say. I also think you're overlooking the fact that curebit was also supported by YCombinator (and Dave has a lot of respect for PG's team and the companies they accept).
I don't condone what curebit did (far from it). I am close to positive someone at YC would have at least helped hash out ideas for design (and 500s' mantra is design, data, distribution), and, Dave has always said: running lean doesn't mean running cheap. But I hope that what one company does doesn't ruin it for the rest of us.