In this kind of forum that encourages entrepreneurship even in the face of stiff competition I'm surprised that many people dismiss the notion that someone could make a better seed funding organization than YC.

There are many successful entrepreneurs in Silicon Valley and elsewhere who would be great startup advisors and inspiration leaders. If they decided to start YC clones I don't see why they couldn't attract great talent. They may even be more successful than YC at generating high returns on their investment. Luck plays a huge factor in startup success, after all...