We like to pretend that the startup game is a meritocracy

It is not "we like", is it just a rule of the game - to pretend that it is about meritocracy, to wear a hoodie.

decrying the lack of innovation

being formally pro-innovation is just a rule like the "meritocracy" rule.

The game is a well-oiled money making machine and like any such machine it is very risk-averse, and with any innovation (or, God forbid, "breakthrough technology") being a risk, it is thus in particular innovation-averse.