I am not sure how they are going to manage the large delta between deal sizes. If they are going to make more Skype style $50MM deals then the smaller deals are just not going to 'move the needle'. In that a spectacular return on a $50k (which he cites) or even $500k deal is not going to make significant absolute returns.
That said - it's good to see they have been successful with their new fund, as the more 'right kinda VCs' in the world the better.
Getting in at the early stages is a great way to ensure you have the ability (actually, the right) to invest at later stages. You can basically chalk up any losses in the seed stage as the price you pay for better deal flow, or maybe as money spent building goodwill among entrepreneurs.
They had me at "As a matter of core philosophy, we invest in companies not stages. We want to be in business with the best entrepreneurs going after the biggest markets and we do not care whether they need seed money, venture money or growth money."
That said - it's good to see they have been successful with their new fund, as the more 'right kinda VCs' in the world the better.