Ellen Pao is a former VC, true. She also was involved in a nasty situation with her former VC firm.

She's also one of the best consumer-product operations people I've ever met, and generally brilliant, honest, and helpful. While I know a lot of YC founders, partners, etc., Ellen is the person I'd go to for advice about whether a product/company direction is a good idea or not.

Bringing a founder back is great, but Ellen is amazing in her own right.

I think that makes up for her being a former VC :)