I'm thinking: how can this be exploited? Can someone just say they're building a new way to shorten urls and need two years in the country to build their business to fruition? And what defines success or progress?
PG's suggestion was that they cannot work for other companies, so they are not depriving anyone of a job. They will have to live somehow (on whomever's money they have), and that will go into the local economy. If you add a clause to the visa that they cannot claim any type of social welfare, then I think the potential downside of 'gaming' nowhere near outweighs* all the potential upsides.
* - opportunity cost of the 10,000 spots excepted, which is why you have the right folks picking the 10,000.
There's an underground economy, and it doesn't always involve narcotics/guns/prostitutes/dog fighting/etc.
While I deposited checks (one potential obstacle), I don't think anybody would have quaffed if I asked them to pay me via PayPal, where I could transfer the money to a friend's ("accomplice's") bank account.
I don't think you need to define progress.
Step 1. Pay lobbyist to add the following clause to the rules: "Treasury will provide 20:1 non-recourse loans to participating investors" -- to attract the 'hot money' and foreign capital, of course. Just copy the clause right from PPIP, in case you think it's not possible.
Step 2. Wealthy foreign investor: send random minion on 2-year luxury vacation to the U.S. Invest in minion's "startup" through some convoluted channel (perhaps a Wall St. Bank's unofficial immigrant startup investment fund).
Step 3. Sell "consulting services" to minion's startup using your U.S. shell company.
Step 4. Free Money.
Obviously there are good and easy ways to prevent this absurd little tinfoil hat scenario I've constructed in the bat-filled cavern where my brain should be. But considering the recent track record of our government botching up finance-related issues, I wouldn't expect anything less...