You may be right for a small subset of VC funded companies, but finding myself in a similar position to the author, I find your statements rather insulting. Yes, it discourages people from starting companies, and I think this may be a good thing. Is your contention that the foreclosure of his home is not a big deal? Have you been through this, or are you repeating what you've read?

I have great worry that trying to start a business in the US is the largest mistake that I've ever made, and think I have legitimate fear that if it fails, there will be no legal way to recover. Suggestions for how others should avoid this position would be useful, but blanket statements that say that it really isn't a big deal aren't that helpful.