You are still stuck in the past were to start a business you need a lot of capital. It's not like that anymore. Most business these days are about services - you need an idea, not capital.

If that's the case, what is VC for? hey, it's right in the name!

You still need capital. Maybe not upfront, but you will need it to survive and scale up. VCs currently act as a "poor man's wealth redistribution" mechanism, funneling capital to bright young things that might not otherwise get access to it.