Having no qualifications whatsoever about such things, I'd fund them. To me, this application (including video) make Lollipuff's success seem inevitable. Everything is stated just so matter-of-factly, but without bravado. They've found a market with customers, and have a product that appears to serve their needs, and to an outsider, it appears that the business will happen whether or not YC (or Silicon Valley at large) gets on board.
I don't know if the YC reviewer(s) for Lollipuff's application is hanging around, but it'd be interesting to hear if their reaction matches mine.