It seems like this guy is a big fan of the [Ben and Jerry's] (http://www.joelonsoftware.com/articles/fog0000000056.html) organic company model, and is deriding YC for being more of the "amazon" big burst type model (or at least accusing YC of creating small startup companies that follow the Amazon model). This analogy is slightly flawed, because, like ViaWeb, most of the startups that YC funds don't really seem like Amazon model companies. I would say that the author of this article is drawing the line between "organic startup" and "explosive funded company" much closer to the side of startups that start small, and including YC funded companies on the "explosive funded" side. That may account for some of his anger.
FWIW, his piece does have a good point: that a viable startup should be able to continue along a successful path even if they get rejected by YC. But as other people have noted there are benefits to being funded by YC: firstly they can [remove some of your distractions](http://news.ycombinator.com/comments?id=9439) and give you good advice; and secondly, applying to and being rejected by YC might just [force you to step up and improve your company](http://news.ycombinator.com/comments?id=9486). While there certainly are (and should be) companies that don't need YC to become successful, I think if you can get ahead by getting funded, then you should do it, and that's why YC really matters.
FWIW, his piece does have a good point: that a viable startup should be able to continue along a successful path even if they get rejected by YC. But as other people have noted there are benefits to being funded by YC: firstly they can [remove some of your distractions](http://news.ycombinator.com/comments?id=9439) and give you good advice; and secondly, applying to and being rejected by YC might just [force you to step up and improve your company](http://news.ycombinator.com/comments?id=9486). While there certainly are (and should be) companies that don't need YC to become successful, I think if you can get ahead by getting funded, then you should do it, and that's why YC really matters.