Great essay. Maybe a new startup should be something like one of the microfinance sites like Kiva (http://www.kiva.org/about/microfinance) but instead of people making loans, they purchase equity in a startup. All the startups put their "pitch" on the web site and let people read the pitch and decide if they want to purchase equity in the company. If not enough $ comes in, the pitch was not compelling or they are not giving enough equity for the $$. One challenge will be to have a system where getting funding is not just about who can make a slick pitch, but about "real value" (how ever you measure that).
Pat