Well, if you attend enough tech events in NYC, you'll probably meet most of the angels individually, and can forego the fee (that's one of the reasons I haven't applied myself).

Investors are looking for deals, and it isn't too difficult to network into an initial meeting.

The one nice thing about the application (like YC) is that it forces you to define your project succinctly.

Also like YC, getting funded is no guarantee of success.