SOPA is terrible! Censorship is not the answer.
I think some of it is a knee-jerk reaction: you're XYZ VC - economy turns bad and some of your portfolio companies start folding. Is that going to make you go out and fund a bunch more? Doubtful.
Second, it seems that the ideal end-game for a VC investment is a sweet (and huge) exit. Except that hardly anyone is making acquisitions now - so any investment you make as a VC you'll have to sit on for a while until the exit environment gets better.
This is why I agree it's a great time to bootstrap a startup if you can - by the time you are able to show revenue/customers/etc. the VC/acquisition market will have bounced back (it always does) and you'll be better positioned to get investment.