My batch S09 was the biggest ever, first to "break" YC, and boy was that batch a dog with companies like Stripe and WePay and MixPanel in it. That being said, I also feel YC has gotten even better in the
@garrytan
era.
So in some ways they are correct (it is different) they just have the sign wrong (it is better not worse).
All through YC's history, investors (for obvious reasons) have tried to tell founders that YC wasn't worth it. In 2010 they just said we sucked. Now, since it's obvious we didn't, they've had to change the claim: now it's YC *used* to be great, but has declined from what it was.