It would have actually been more impressive if they weren't so vague .. now they are probably going to turn off a lot of good prospects.
I say this as a YC alum whose 1st job post was fairly ill-advised (though not dishonest). Believe me, it is quite tempting to play around, so I wouldn't be too hard especially on the smaller teams who haven't been recruiting/employing for too long.
They will learn, soon enough. It's also important to note that many teams consist of 17-22 year olds, and as this app is aimed at college students it seems like it could be one of those teams. So cut them some slack.