Good write-up. What we're seeing is something similar to the Gold Rush and Dotcom Boom of the past. There's a bit more reason involved thankfully. Everyone has their eye on the prize and golden ticket to it (tech startups) that they're ignoring every detail that distracts from it. They continue to do this even when the details show they're stepping away from the prize or probably won't achieve it. A chance to pivot or cut losses in favor of different product/service is lost due to how this perspective blinds onlookers.

To be honest, it's a lot like a religion. Creating, pouring energy into, praising, and not blaspheming startups is the religion of Silicon Valley. They need more reason and less religion.