I think he means the "change the world" vibe we get from a lot of startups. I think its great YC is broadening its scope into more traditional businesses.
Well, you got it right - YC is broadening its scope - that means that this investment is really kind of new type for Graham and co.
I guess, I should not ask what was so cool in AnyVivo but try to say in another words that it looks like a turn to traditional spheres to me.
It's probably true that YC companies are more willing to have a physical component (producing hardware hasn't worked out very well, but service, inventory, etc. might) now than in the past, but that is probably true of startups in general (Square is a great example; a tiny loss-leader physical product which is the wedge into a trillion dollar business).