(a) the fact that good startup ideas have to look like bad ideas initially and
(b) that the optimal way to grow a startup is to launch something as small as possible as fast as possible
together mean that most startups look bad initially.
I wouldn't say just you though, because there are a lot of people who don't grasp this.
I think it comes down to a difference between those who see the now and those who see 3-10 years out. If they came to you and said "we've got this awesome game, and we plan to stop there", you wouldn't fund them; that's what most people see. I have no idea what trick they have up their sleeve or if they'll sink or swim, but if it's a YC company, you can assume they have a grand plan (even if it's wrong in the end) to be a Big Thing (TM). That most people don't see it is probably a good thing.
I dont know if it's just me, but I have a question about that: http://news.ycombinator.com/item?id=4563402