VC money did none of those things.
False.
VC Money:
1) Creates unsustainable business models. They fund startups which have no real business model, other than "get a boatload of users by offering the product for free, and then either sell the company or monetize users through profiling". This does not offer sustainable growth, and more often results in the site shutting down when the userbase doesn't materialize. see: Twitter, Tumblr, Facebook, Pinterest, on and on.
2) Suppresses competition. Artificially lowering the price of a product to free puts competitors that do not have millions in startup money to burn through at a substantial disadvantage, even if they have a better-quality product. This is akin to (although actually more severe than) China flooding the U.S. with cheap goods that local companies cannot compete with on cost.
3) Turns the customer into a product. VC money has mostly funded web startups which operate on the previously discussed business model of making the service the razor, and making the users the razor blades. It's a self-propagating situation, as new VC-funded startups compete against other free-service VC startups. These free services rarely have direct advertising; instead, the user is invariably the product which is sold to advertisers, or another company.
Your examples are anecdotal and are not really commercial services. Also, I should clarify that I'm not opposed to VC money. The traditional idea of venture capital is that it helps an existing business expand operations or invest in R&D they wouldn't have the money to otherwise; a financial second-stage rocket. VC firms now hand out money to people that only have a vague idea of what they are building, and have no idea how to monetize their product. But that's ok, because VC money gets you articles on Techcrunch and The Verge, and that gets you lots of buzz and thus users. Users who amble into the slaughterhouse to be packaged up as products.