While i do agree with some of the negative comments here regarding the lack of market research, i also gotta say: the questions (Eclipse, Xcode) seem rather... well, off.
Off? Really? As an app developer looking at the demo video, the first question that pops into my head is "why would I use this over Xcode"? (And it's still not a question I have an answer to.)
These questions quite unambiguously pointed at YC never giving their application proper attention. Perhaps they skimmed it, but even then they should've picked up that the product was for non-developers. So to people who spent days writing the application and planning their life around the interview it would look like a half-ass effort on the YC part. It's only natural that they are pissed about the whole experience. One can hardly blame them.
An interview always has two sides, and my take-away from this is that YC looked, frankly, unqualified to hold the interview.