The OP doesn't really say how startups get hurt. I didn't went through any incubator but I'm planning to.
From my point of view there are definitely bad incubators out there - the ones that get started by random people which the OP mentions - but these are no brainer: if you part with your equity for their pitch you don't deserve to be an entrepreneur anyway.
There are also top-notch ones - YC the hottest one - these are no brainer too.
And finally there are about a dozen of in-between. And that's where it stops being black-n-white. There might be some benefits in going through their programme, it just all unpredictable. You get different experience being in a different bunch, but still, I have no idea how it could "hurt" a startup if they get 3 month pay and advance their idea.
From my point of view there are definitely bad incubators out there - the ones that get started by random people which the OP mentions - but these are no brainer: if you part with your equity for their pitch you don't deserve to be an entrepreneur anyway.
There are also top-notch ones - YC the hottest one - these are no brainer too.
And finally there are about a dozen of in-between. And that's where it stops being black-n-white. There might be some benefits in going through their programme, it just all unpredictable. You get different experience being in a different bunch, but still, I have no idea how it could "hurt" a startup if they get 3 month pay and advance their idea.