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An interview with Paul Graham on TechCrunch is attracting flak from the blogosphere for the investment criteria he uses for Y Combinator.

Last week we witnessed the sale of Kiko, a well-designed Y Combinator-funded online calendar. The deal went through via eBay to an as-yet-undisclosed party, for a quarter of a million dollars. Which is a good return for Paul and the Kiko founders, but not the really big bucks that they would have seen had Google bought it. Google of course launched its own calendar app, integrated into Gmail, which prompted the Kiko sale.

So does a fire sale on eBay, albeit a profitable one, mean that Graham is any more correct when he advises startup founders not to worry about business models?