While the first part covers my feelings very well about the current 'state of the nation', I'm more concerned that newly minted millionaires (not just from a recent IPO, but others too) see this as status quo as they join the Angel/VC group.

This is not the trend, and making it so is very dangerous.

Silicon Valley has a great opportunity to become an integral part of the resuscitation of the US economy. This is a bad time for a bubble burst.

If the bubble is about to burst, smart money will start making safe bets.