Actually, if I wasn't busy and on another continent, I would apply based on this ad. I don't think it's a bad strategy at all, given the cachet of YC. Also, it's likely that they are doing other things too to look for great hires, not just this HN posting.

Edit: Not trying to imply that I am a "great programmer"... just providing a data counterpoint that they will probably get people who have other options too applying to this to at least check it out.