Dalton later pivoted out of PicPlz and is now building an exciting new service called App.Net.
If the App.Net concept was on the alternative idea list (likely considering the generalist nature of the entrepreneur [music, photos, whatever app.net does]), maybe the pivot would have happened sooner.
It would be easy to take the opposite position if you were to consider that an investment is usually (or supposedly) a product of the investor's passion for your particular business, not necessarily the field it belongs to. It can be seen as the investor saying "we're with you on this, and we'll fight your competition by your side". It's a matter of perspective, and in this case, it is easy to see things from both sides.
All this being said, I love Dalton's honesty, and Ben's post. A ton of ink was used to cover this matter, but the fact is, everyone's happy here.