You could argue that "filling the application gives clarity to a founder". Again genius marketing. That comes at an opportunity cost of talking to their leads, their prospects. At any rate, it takes you away from what you originally set out to do. You get more clarity from talking to your target market than filling an application.
Another thing is "people got in applying on a whim". Yes, those are exceptions. But, any average founder understands that if the decision is likely to be determined by what they write in the application and their application video (and several factors outside of their control), they will optimize it to the max. The videos you see are always multiple takes. The applications are always pruned and reviewed and rewritten before submitting.
When your goal is getting into YC, all this is worth doing. When the goal is building and growing a product, such advice, no matter how well intended, hurts more than helps the founders. It's okay if YC picks 200 startups out of 15000 instead of 20000.