[bruce511]

Well they can't let everyone in because they have finite attention to give, and one of the reasons to be in YC is for their attention.

They also presumably have finite money, so giving money to everyone is clearly untenable.

YC is a brand, letting everyone in would dilute that brand. Letting people pay to get in would dilute that brand.

They act as a first-level-filter. Having made it into YC goes on your resume Because you passed that filter. The VC network values you more Because you passed that filter.

In other words YC as they are, are specifically working as designed. Changing that removes their value.