> The only thing I'm upset about is that I put in my application yesterday and now the competition is going to skyrocket!
As long as the quality of the competition doesn't skyrocket you'll be doing fine. And if competition worries you overmuch don't go the entrepreneurial path, it will be with you for the rest of your life if you succeed even a little bit.
Competition is good, also for you. If you could have done a better job on the application then the time to deal with that is before you hand it in, not when you know the competition heats up, you always do your very best. Then you have nothing to worry about.
But overall I think this is great for YC, and great for their startups. It's everyone else that should be worried.