This is a conspiracy theory. As it confronts evidence that might contradict it, it mutates, steadily choosing paths that are less falsifiable. It essentially posits the existence of a "Venture Capital Illuminati" in which organizations that compete with each other and are united solely by a shared general business model have teamed up, among other reasons to oppress (no exaggeration) Michael O. Church, because his ideas are too dangerous to them.
I agree though that Michael is taking it a little too far. What's true now, has been, and always will be is that money is king -- all other things, all connections, all politics come second. If YC has a startup in its class that they legitimately think is the next Google, they will fight like animals to get in on it.
