Live to fight another day
The story tells us as much about the ethos of Silicon Valley VCs as much as anything else. They tend to regard any form of regulation as bad for business: whether it's of workers rights (Amazon, Uber), radio waves or the provision of health services. People like Peter Thiel might happily applaud unreliable but cheap medical diagnostic services.
While Miss Holmes is going to be castigated for this I'm she'll move onto other things. She's obviously clever, determined, charismatic (being pretty is part of this) and not too scrupulous. Sounds like excellent CEO material, though probably not in the health services. At least not for a while.
And it sounds like the idea might even have legs, though it will probably need some proper money and researchers to get there. Makes a change from things like Groupon, Soylent Green, etc.