I would agree with you but recently I have really started to like the TechStars program. Why? Because of the impression given to me from their recent videos about the start-ups and the program that have appeared this time. The videos show how the program works, the openness, the mentoring, the city (Boulder not Boston), the community/spirit there, what the founders are like. When TechStars first started, I was thinking 'they have no chance, YC is the only place to be'; but now, I really respect what they have going on there, and wouldn't mind going there.

YC seems a bit more closed. Outsiders can't gage what it is really like except from a few vids here and there and the comments on HackerNews. Plus, with the increased popularity of HackerNews, it is quite difficult to track the comments from YC company founders. Of course, when someone gets in then they probably don't care any more, but it's always nice to be open and show people what you're all about. The same goes for all the other programs.

The point: if you're starting a new program, especially in a traditionally non-tech area, it is best to be open and show what the program (including location) is all about. It's just good marketing.