Firstly, a Virgin Mobile (no contract) Android phone is $30. Gas is well over $3 a gallon near SF. If you can afford to drive a car (even assuming it was given to you and you therefore have no payments), you can definitely afford a smartphone.
Secondly, the company rep was quoted as saying that the highest price ever paid for a spot was $15. Is this is steep price to pay for a couple hours parking? Sure. Is it only for the wealthy? No, I'm thinking not.
The reservation thing is much more of a "jerktech" startup because of the potential harm to the restaurant[1], but the parking startup seems like a win, all considered: people who care more can purchase certainty, and people who don't care as much couldn't be certain of getting a parking spot even before this, so...
[1] though they could just require showing photo ID in the reserved name to effectively combat this, at least for a while.