Vinod Khosla is a very smart guy, maybe's he's not referrring to the software industry, but do you guys think there is a limit on what hackers can do with "just a bachelors."

This is sort of related to having a technical advantage on your competitors. How can startups that aren't from cutting edge PhD proposals or started by that rare star hacker (Bram Cohen, Wozniak, etc...) have real and sustainable technical advantage?