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I think one of the biggest things you get from YC is acknowledgement. Most people who apply have jobs or at least more than one idea or project: getting into YC is kind of a confirmation that someone thinks you're on the right track.

Even though the promise of Silicon Valley is anyone can make it, a lot of people still need "permission" to go full time on a start up.

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I think this is absolutely correct. In particular, it gives you a socially acceptable (and externally validated) excuse to ignore many of other commitments in your life for three months so you can get your idea off the ground. It's a lot easier to tell your family that you're going to quit your job and hole up in a cave working on a crazy idea for 3 months if you can hand them a New York Times article on YC and explain that you are going to be a part of that thing they keep reading about.

I think the best way to get the "permission" should not be from any of investors, more from customers.

With many of customers who love your product,you should be able to attract investors or incubators more easily.

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