Yep. The cost of delayed profitability is extremely high for founders. Remember for the VC's you are just one of many plays and if things turn out bad then it is "oh well" for them. For a founder "oh well" is a disaster.
I think the basic problem is it is more fun to run a startup that is focused on growth than one that is focused on profitability. Smart people are very good at coming up with justifications for doing what they would like to do.
I've met some that, because of ego and narcissism, ignored profitability, raising unnecessary money and eventually losing autonomy and control.