Though arrogance runs wild around here, I think you paint a false picture of Silicon Valley by ignoring the considerable swath of the population that chooses to live semimodest lifestyles. The fact is, the choice to drive a Ferrari often is nothing more than a reflection of the driver's own lack of security. I'd be much more interested in hearing you typecast Honda Accord or VW Golf owners, for example. Maybe he hasn't heard, but angel investors and VCs are tired of throwing good money after bad to fund poorly organized companies.
Truth be told, the failure of dot-coms has little or nothing to do with PR firms.
I've seen firsthand the difficulty skilled PR professionals have had advising overworked, overwrought and overzealous Internet CEOs. Successful PR campaigns are made when agencies are allowed to implement smart, creative solutions that don't go above and beyond the scope of what they can realistically achieve. I own a PR agency that has specialized in technology startups for over 15 years. Each of the points brought several painful case studies to mind. As an attorney who practices intellectual property and technology law, I can say that many legal issues relating to software have yet to be addressed by a court or have been addressed on an extremely limited or fact-specific basis.