You didn't apply to a startup incubator. You applied to a local vanity project.
Local/city governments all over the world are trying the "incubator" fairy dust in an attempt to seem hip and with the times. The "analyst" you spoke to is really a gatekeeper trying to filter out any project with a bit of risk (or any possibility of outsized success). What they're looking for is zero risk, guaranteed small-time success which officials can point to and say "see, we're entrepreneurial and digital!!".
On the other hand, if being rejected by third tier "analysts" gets you this down perhaps business isn't for you.
His request: he told me to send in an executive statement
Your response: an executive statement for an early stage tech start up is a huge
waste of time
Fund's requirement: the company must stay in Canton, OH for the next 10 years
Your response: apply for funding outside Canton, OH
His response: according to him my idea wasnt unique enough
You need to refine your pitch
His response: lack of market validation
four people isn't validation. Even in stealth, you need to get a number of people
using your product. You need a revenue model, you need people using the service
to tell you what needs to be improved. Your idea may not be easily marketable and
clients are going to give feedback on what works better for them.
His question: why a start up would want to remain in stealth mode
Your response: I began to get slightly agitated
Refine your pitch, adjust your attitude, get some market validation and paying customers and approach other funds or bootstrap until someone notices you.
What part of this is PG's fault?
Unless you get accepted by YC or any funds, there's no reason to mention them in the first place.
It's like trying to hit on a girl and saying, "I also met this other chic I liked ..."
I don't really feel bad for you. Try again.
You were turned down by one program? You sound really bitter and I can see why they turned you down - you're not ready to be an entrepreneur. As a person running a start up, you're going to get turned down A LOT. So what if YC or TS or any incubator/fund is accepting 1%? You try. You try again. You keep trying. As a woman founder, I face much tougher numbers. I don't stop because the numbers are stacked against me! I keep trying. I figure out ways to monetize without funding. I get feedback on how to be better. When someone tells me an aspect of my product is crap I consider it and improve. I don't write out rants about how someone else was to blame. And yes - YOU NEED MARKET VALIDATION. If you can't prove that people will use your product, why would someone invest in you. This isn't 1998.