The big reason why C corps are preferable is because S corporation shareholders can only be people -- not other businesses, like VC firms. (S corps also can't issue preferred stock.) An S corporation can't take venture capital without first reverting back to C corp status. But an S corporation can save a lot of money on taxes.

But although many of our businesses want venture capital, most are unlikely to get it. In fact, I'd hazard a guess that more tech startups will have income than will have external corporate funders. (This usually happens when the founders need some money, so they put their original idea on hold and do some consulting for a while. Eventually they're doing exclusively consulting, because it pays well, or at least it pays off quickly.) By that point, you're probably unlikely to remember the tax consequences and switch to an S corp.

Why not start out as an S corp, and switch to a C corp iff you acquire VC or sell preferred stock?