Probably a better strategy. If you take a look at Jessica Livingston's talk from Startup School (http://startupschool.org/2012/livingston/) she notes that YC gets nervous about hardware--but nerds (like me) on Kickstarter love it. That's how the pebble watch came to grow successfully. Kickstarter is once of the few places you can find and fund really innovative hardware products. Best of luck
Thanks for the link. I figured YC knew the risk if PG asked for more hardware people to apply. It's true that it's very hard to have the same type of growth in a hardware startup as software, but someone has to make the gadgets. Additionally, while Kickstarter gives you funding, they don't provide the same type of mentorship that YC may offer.
Yes, the general fear of hardware in the valley was cured over the past year. There are still issues specific to hardware companies, but it is no longer that big a problem.
Things which are hardware plus service are even more popular.
