We might be, but are bubbles always bad? Lots of money gets thrown around. More people get jobs. Ideas are everywhere. People get experience starting and running companies. Interpersonal and business networks are built. Lots of bad ideas are funded, sure, but a few great ones also emerge.
We shouldn't condemn bubbles as automatically bad. We should be aware of them, though.
The problem with a bubble, is not that 'money is thrown around' by investors - but that the source of the money ends up being in public hands.
The founders get their investment from the investors.
The investors get their money back when the company is acquired (or makes money).
In the early stages of a bubble, this process generally consists of 'money being thrown around' as you say.
However, due to the hype of the returns from these 'investments' (e.g. Facebook growth) - it attracts the public investors into wanting to get in on the 'action'.
Typically this is done through an IPO, which allows the public to come on board and potentially pay all previous investors / founders down the chain their money back (plus more).
However, even without the IPO's of the last bubble (and they may still come!) - the public money is finding a way in (e.g. Banks setting up Social Media Investment Funds). Not to mention any other general investment companies having some of their portfolio riding on 'internet based stocks'.
Then when the bubble eventually bursts (The trend reverses and everyone tries to get out while they can) - it is often the public investors which are left out of pocket / losing their homes / etc.
The point made at the end of the article is, if you are in a start up right now (or even a VC) - it is better to get out early, than to get greedy and end up getting burnt when it bursts (e.g. GroupOn).
We shouldn't condemn bubbles as automatically bad. We should be aware of them, though.