While I think you have some good points, and I'm not a huge fan of Plethora (like I said, their service was unusable for me), I think what we have here is people coming from different perspectives.
You understand real hardcore manufacturing and have a lot of experience in that realm. Plethora seems to be targeting people that don't know anything about manufacturing but want an easy way to build parts in small quantities. I don't know how they plan to scale to full manufacturing, and I don't know their numbers (the real question is retention, how many customers are coming back with larger order numbers), they may have found a niche by targeting customers that just don't know any better. I assume this market is small and I am skeptical of its value at all, since I know it's easier to just hire someone internally or just outsource it to a competent shop, but something Silicon Valley can do like nobody else is hype itself up. What that means is a lot of things, but it includes pumping up valuations for an eventual acquisition.
Is Plethora creating real value? I'm extremely skeptical. Are they attempting to create a company that can be sold for a profit? That seems pretty likely to me, and that's what the overwhelming majority of investors care about.
I think part of the problem is Nick sounds like he's pitching investors in this thread, when he's talking to people that are experienced in manufacturing. You're not his target audience. Then again, I doubt he's planning on showing this to investors, so I'm not really sure what his goal is here (unless he's just defensive, which is a really bad sign for him being able to see the forest for the trees).