I disagree. Me and friend started a moderately successful web publishing business years ago while on NEIS. Of course our plans did diverge significantly from the plan we submitted to them to get approved. Obviously you shouldn't expect a lot of useful advice them but 6-12 months to work on something is still quite good deal.
If you actually have any evidence of this "kiss of Startup death" you should post it.
You wouldn't care to point out any particular section. It is quite a long document and the language appears to be a bit vague and political in nature. Or is your point that this is kind of document is actually part of the problem.
Either way I think that the NEIS program is a bit smaller that what these guys are talking about. If you do a NEIS program you are just as likely to be applying alongside people who are wanting to sell homemade candles at markets. It is really an employment program rather than ITC.
If you actually have any evidence of this "kiss of Startup death" you should post it.