Up voted you because I agree that people who would really benefit this most likely don't have 500$ to spend.
However, you're implying the 20k$ startups get from YC represents all the value derived from being a YC startup. If I ever apply to YC, it will be for press coverage, the YC network and sound advice.
So, it's a bit of a long-running thing with me... that I continue to comment that YC = $20k + all the extra benefits.
The issue I have with YC is that I think the 'extra benefits' can be gained in other ways that doesn't require you to put a valuation on your company. I've been living here in SF for many years and I feel I have access to many of the 'extra benefits' YC gives through my own network (without having to take a specific route of funding)
However, you're implying the 20k$ startups get from YC represents all the value derived from being a YC startup. If I ever apply to YC, it will be for press coverage, the YC network and sound advice.