We really don't know Curt's capital situation. Also, there is no indication that the employees were not paid for the time they worked at the venture. There is no obligation moral or otherwise to pay people after they have stopped performing service for you, nor is there any obligation to pay health insurance premiums for people after they have been discharged, except for federally imposed COBRA subsidies. These people didn't devote entire careers to this venture. It flopped rather quickly. If you favor a regulatory system where the employer has to pay these types of benefits, you would have an environment where no one would take this type of risk. Most ventures fail. If you subject the entrepreneur to personal liability for ongoing employee expenses after the venture has gone bust, people will not take those risks. If this venture had been successful, those employees would have been in on the ground floor of something that could have made them a lot of money. They took a risk too. If they wanted job security, a startup software development firm is not a good choice. Curt owes the employees nothing, and no, I don't feel sorry for them. They got paid to do a job, and now the job no longer exists.
As to your last point, it would be a good point, except it lacks context. Let me be more precise. I only care about baseball players for what they do on the field. What they do in their personal lives doesn't matter to me. Nothing in their personal lives would change my opinion of a player, because I really only care about how they played. I don't know them as individuals, so I am not going to pass judgment on them. Those who are criticizing him don't know him as a person or all his charitable work, so they shouldn't be condemning him either. Is Curt always right? I don' t know and I don't care, and anyone that thinks they know whether Curt has been right or wrong based on some press reports is sadly mistaken.