Let's double check your logic against the current VC system:

Sounds like this would be a good system to have a bunch of idealistic developers work on business problems - which are often boring and require painful work such as talking to people.

This doesn't sound like a good system to encourage developers to work on pet tech projects.

You've articulated the main criticism of the status quo. That by its nature de-prioritizes the idealism that produces unicorns. Never mind the effects of that on dreamers who find it difficult to subsist in a stifling world that wasn't designed for them. This is why I feel that this is a dark future at odds with the original spirit of the web. But hey, it makes some people billions of dollars and all it cost us was the life we might have had.