I can't get over a few things.

One, how many of these so-called startups are actually receiving outside funding? It's one thing to hack together a dumb idea and put it online with ad banners all over the place, and another to actually receiving funding for said idea.

Funding hackers versus straight-up entrepreneurs is smart on YC's part for a number of reasons, but most of all because sites like YouTube blow up just as much for the technology behind the scenes as the implementation of the idea itself. Justin.TV is viable not just for its idea, but the clever things they've developed to make live video streaming cost-effective. And this likely plays into why YC looks more for smart people, as opposed to smart ideas.