This is a valid observation. Capital breeds more capital and just like water seeks the lowest point capital will seek to enable those who are willing to bend or even break the rules. This is embodied in YC's application questionnaire in interesting ways, it is effectively capital testing for exactly those properties. I think 'ethical' should be made explicit in your list, and not lumped in with 'other'. Because that is one of the more important ones and it usually is also the first to be thrown out.

Capital allows reaching a wider audience, experimenting with different angles and use cases, and addressing multiple pain points.

So yes, you're right.