Your analysis which leads to your conclusion that the reaction is overblown is based entirely on a side-point in the memo. A flashy, provocative side-point, but still just a side-point. Meanwhile you don't acknowledge or address the actually scary parts of the memo, which I think is what is getting people worked up.

If you don't want to be called out for not addressing the main points of concern before dismissing the issue, why don't you address them rather than complaining for being called out?

Anyway, I seriously doubt "startups will be startups" will be the narrative very many people will accept here.