I don't have that sense, rajeshamara.
YC seems important to me for a few reasons:
One, they do a better job than many investment firms at teaching some basics about start-ups. In that way, I think they encourage a lot of people to try who might not otherwise have tried. People often like to impress their teachers.
Two, as angel / early-stage investors go, YC is the closest thing there is to a top-tier firm. We don't know much about their financials but we do know their first big raise came from Sequoia, itself a top-tier firm. Top-tier funding comes with perks. You get YC's participation and connections. You get to say you got money from YC. $N from YC is worth a lot more than $N from your uncle.
Finally, for many, a YC interview will be their first big pitch and so there is a damaged goods concern: if YC turns you down, your odds with others are diminished. (That's not exclusive to YC: if X turns you down your future odds are diminished, for many values of X.)
Being turned down by YC doesn't mean that you are at the bottom of the pit. I'm sure there are many good firms they would pass on for reasons that say nothing bad at all about the firm. It is, however, a big obstacle you'll need to get around.
-t