I don't find this distinction very useful, and I disagree that it's harder to get screwed over. It's in fact, just as easy.. we're only talking about degree. I think your argument is that instead of your shares being worth zero, they can only be diluted to any positive real number... which brings me little comfort.
With dilution the founders, who are more likely than you to have a say in what happens, are also likely to suffer that dilution. However in the incident that happened the founder didn't lose a dime.
