Well said. You're exactly right. I didn't cover it, but the larger concern I have here is that this misguided approach could lead to distrust from wall street of any tech IPO's that aren't enterprise, or low/mid cap.
BTW, IPOs have been in long term decline (in terms of absolute numbers) for ~20 years now - see the economist
Most of the reasoning behind it appears to be that the legal system has been modified in such fashion that it favors other forms of firm structure.
Hardly indicative of any natural decline, it would be easy to take from this article that the Pump & Dump style IPOs (and other massive erosions of trust) are strangling the effectiveness of Capital Markets by scaring away investors and inviting increased regulation.