I tend to be optimistic about things YC does until proven otherwise, they've earned that. Having pro rata rights is a reasonable way for YC to deploy a lot more capital in a signaling-neutral way, with some inherent bias towards companies that are doing better.
You are right that it does substantially change things for ownership conscientious investors.
There are myriad other issues as well, perhaps the two most interesting are:
1. When I went through YC, it was emphasized that YC had the same equity situation as founders. That's certainly not the case now.
2. Pro rata is often an actively managed situation, I'm curious how YC will handle situations where founders/future investors seek to retroactively adjust pro rata
You are right that it does substantially change things for ownership conscientious investors.
There are myriad other issues as well, perhaps the two most interesting are:
1. When I went through YC, it was emphasized that YC had the same equity situation as founders. That's certainly not the case now.
2. Pro rata is often an actively managed situation, I'm curious how YC will handle situations where founders/future investors seek to retroactively adjust pro rata