This rip-and-flip startup model is really just a poorly disguised form of gambling. Sure every week someone wins a massive payout, but for society as a whole it is a negative.
But I agree that startups are a terrible proposition for those with 0.5% or less, which is a matter of choice for the employee who could go get a higher expected return from any of the big tech companies for equivalent (and maybe even much less) time and work. This subject has been rehashed many times on HN.
As for society, um, the US (at least) is a "society" composed of many people who treat buying state lottery tickets as a retirement plan. MVP startups IMO are far less toxic than that. That said, when I made a little $$$, the most toxic thing I encountered was several supposed friends suddenly begging me to fund their ideas because VC wouldn't. @#%$ that, I have plenty of my own ideas to bootstrap with my hard-earned cash.
Yes it is amazing how people react once they realise you have money.
Sure, it's more mating display/beauty contest than entrepeneurialism, but are we not entertained? In the meantime, how else is one supposed to get the cash to bootstrap their big idea in the first place?
It's kind of like how John Williams wrote the theme to _Lost in Space_ long before he wrote the soundtrack to _Star Wars_, no? Or, ya know, Paypal before Tesla and SpaceX.