The weird thing about it is the people who hate the word are arguing not against the actual usage -- "people who demonstrate their merit get ahead" -- but against the illiberal definition they've assigned to it: "people who have inherent merit get ahead".
Disclaimer: I'm not familiar with the valley, and if there really are a bunch of young white males with the right "pedigree" who are getting money thrown at them without having demonstrated any real merit, then I withdraw my objection. However, if they're getting money for things that you don't think have merit, like the Nth photo sharing app, then I think it stands.