If that is why VC is broken, how will a service like AngelList help? I fail to see how connecting investors and startups in new ways addresses the issue of poor returns.

For what it's worth, my impression has been that there is too much capital chasing too few funding-worthy startups and in recent years this has been driven in large part by monetary policy, which is producing capital misallocation and malinvestment across many asset classes.

I'd guess that when the game is over, angels and super angels will be especially affected and many will drop out of the market altogether. That, of course, would negatively impact AngelList.