The thing most people miss, though, is that it is OK to crash and burn. It isn't a tragedy.
Absolutely. You can learn a lot from trying and failing. I think it's important to have realistic expectations though. It's better to start small and make genuine progress than to over-reach and spend all your time reinventing the wheel.
as long as people understand the very real risks and the very possible benefits.
The only benefit is experience, and that's so easy to get (or at least share) that it's insane to try for a startup when exactly the same result could be achieved as a mod team. You won't make any money but you won't spend any either.
Having said that my concern is not that they're going to try and fail. What worries me is that they're being unintentionally misled by an ambitious and passionate team leader who has no idea what he's doing. Hopefully I'm wrong, but all indications seem to suggest otherwise.
I'm also a little irked by the constant flood of people claiming to be game designers who demean and disrespect the work of real professionals with their disregard for experience. I didn't learn to paint by scoffing at the old masters. But that's just a pet peeve.
Unless Tom wants to continue the discussion I'd rather not hijack his thread any further. I'd love to take it up in another thread if anyone's interested.