If the Principals are not on their 3rd or 4th business at least...
And can't get funding from experienced Venture Investors... then the money is being SET ON FIRE.
We already have about 1000 Alt crypto-networks. How many of them have a non-trivial revenue stream? < 1%?
The worst in human nature = desperation to catch a ride on the next Speculative Bubble...
It's Pride + Envy + Wrath + Gluttony + Lust + Sloth + Greed p2p decentralized.
Obviously it remains to be seen, but my feeling is that the DAO will vote down those types of proposals. Thats the entire social experiment anyway - how well will the "crowd" choose where to invest. I definitely understand your skepticism, but I also see some hope that they will be able to sort through the bad proposals.
Other high quality startups may look at the DAO as a way to get funding without having to give away a huge portion of their ownership of the company. Many other start ups simply have a hard time getting funding because they don't operate in Silicon Valley.