If you think of it like this, you'll poison yourself. Maybe reframe it as "Declined the opportunity to invest in this team at this time."

(See also: college, job offers, consulting engagements, and -- took me decades to learn this -- dating.)

I agree with you 100%.

That said, I do think it's worth noting that the pleasant fiction of "it was the idea, not us" is patently false for YC.

A healthier (and more accurate) way to think of it would be to say that they're rejecting their perception of the team, rather than the team itself.

They're rejecting the team, which could mean two good people who don't fit well together.

While this is strictly true, this guy already beat out 90+% of applicants just to get to the interview phase. While it's disappointing not to go all the way, reaching that far is a meaningful accomplishment.

This doesn't explain how some people get rejected for one idea and get accepted with another one.