I like to find (a) simple solutions (b) to overlooked problems (c) that actually need to be solved, and (d) deliver them as informally as possible, (e) starting with a very crude version 1, then (f) iterating rapidly.
This got me thinking about how I tend to make new things. I agree completely with points a and b. Point c doesn't always apply for me. Sometimes I do things just because they're fun, intellectually stimulating.
As for points d, e and f I usually do the opposite. I try to find the perfect solution from the get go and I usually don't release things until I'm completely satisfied with them. This is not how I would like to work though. I think they way Paul Graham does things is much better. I guess I'm afraid of the critique I will get from delivering imperfect solutions, especially to problems that don't seem important. I have to work a bit on my trust issues.
In the end, Paul Graham's article doesn't explain what important and overlooked problem Arc solves. I'd really like to know because I don't think it looks that impressive either. So please, mr. Graham, instead of just calling us dumb, please explain why your solution is such a stroke of genius.