Haha, well at least you fixed the 'not enough applications problem'! I would have submitted but I can't move this summer, although I think just getting feedback from yCombinator would be worth it to me. To bad time is your most precious commodity.
We do, in a sense: some people who apply we already know, because people we've funded recommended them. If you can impress the founders of a YC startup, that counts for a lot.
This site was designed partly as an additional filter. It works too. When I met danielha I knew his name because he was #1 on News.YC.