It keeps the company in check. It reminds the company that expenses come with the business. It forces founders to be mindful of what they're getting. It makes everyone realize that they're being invested in as much as they're investing too.

I don't care if psychologically $35k sounds better than $50k minus expenses to you. It makes for better founders and better companies. You should think about it from this perspective.

I agree.

(I think part of the reason is that some startups have more team members, which takes up more resources in the office.)

They may be selecting for companies and teams that are more analytical, than looking for a 'psychologically better' deal.