But they aren't wasting resources. They're producing media that's consumed by millions and millions of people. pg's argument is you should try to kill them off even though they haven't proven their obsolescence. My argument is they haven't proven their obsolescence because there are good people in the studios (as well as bad people). So you shouldn't make everyone working in hollywood a blanket target.
I have no problem with YCombinator funding entertainment startups. More power to them. But you can do that without spreading hatred.
It's a battle cry. Schumpeterian creative destrucion; can't have one without the other.
Also embedded in pg's rhetoric is the social malignancy that is coming out of the dying Hollywood. That's why it should be priorities to be "killed".
And when we say "kill", we mean make more efficient. À la Schumpeter. The rent-seeking middle men will be eliminated; theoretically, the creatives will have more take on their contributions.
It's not okay to set off on an industry on a level playing field. But the MPAA and RIAA with SOPA/PIPA created a toxic playing field. I will still play by the rules. But in creating something that does their job better and thus destroying them, I will know I have helped society one more turn.
My personal opinion is that they produce media at much too high cost. It is possible only because they have way too much money on their hands.
Technology drastically lowers the cost of making movies. Instead making a movie for tens of millions of dollars now they let it be made by some else for less than million of dollars 10 years later.
Big budgets also cause lack of creativity in Hollywood. If tens of millions of dollars are at stake you try to minimize the risk. So you have to pick least risky script, least risky cast and so on and so on.