Although I think there's room for discussion on the amounts, these seem like sensible counter-proposals that do a lot to overcome the objections of consumer advocates. I'd be OK with a law of this form and figure that one could build in support for intermediate levels of investor sophistication after a year or two. A $1000 cap is low enough to ensure nobody gets wiped out while still being viable for bootstrapping. Alternatively, I'd suggest $2500 - the same amount that individuals can donate to a political candidate.

The other requirements are sensible and might help budding entrepreneurs put pressure on their state legislatures to simplify, streamline, and reduce the cost of the incorporation process.