But VC's aren't investing as much in application projects, since there often isn't a clear path to profitability with a decentralized application. A big reason for this is that the layer 1 blockchain will capture most of the value of the applications running on it (for a real life example of this, see Uniswap on Ethereum).
At the same time, the success of a layer 1 blockchain is judged by how many applications it has. So maybe one could argue that applications are valued more highly by VCs for enhancing the appearance of success of layer 1 blockchains than for their own sake.
This leads to the situation you portray, where it's sometimes easiest for a founder to get investment money from VCs that has first passed through the hands of a layer 1 project.
You know, it's funny to watch Silicon Valley years ago and laugh at the "new internet" part. Then realize shit, I've actually become this person now. :)
Appreciate the advice and kind words, best of luck to you as well!