When someone says, "venture capital is broken" what they're really saying is that there is a systematic problem with the way venture capital is allocated or how risk is managed. As a financial intermediary, that's basically what a VC does: allocate capital and manage risk.
VCs have sole responsibility for investing and managing the capital that they raise for which they get paid handsomely (often 2% of AuM annually and 20% of profits, if any). Entrepreneurs have no control over and get no remuneration for allocating capital or managing risk.
So what if there are too many "me too" entrepreneurs seeking funding. So what if there are a bunch of wacko founders pitching "hover boards." So what if innovation is dead. If VCs can't allocate capital or manage risk then they should decline to invest and return the money to their limited parters.
Stop blaming entrepreneurs for something that isn't their fault. There's plenty enough to blame them for that is their fault.