Money quote: Here’s what we’ve really got to confront: Venture Capital is INELASTIC. No matter how awesome and investable accelerators help these new startups to be, venture capital doesn’t have room for all of them.

While this may be true, I don't think this implies the premise of the title. Yes, not all of those startups will make it to 'proper' VC, but I think they produce information that can means those that DO make it are better-chosen.

From a VC point of view, I imagine that knowing what a potential funding target has done with their $20k accelerator funding is very valuable, and will lead to wiser investments.