Well, not quite in a biggie vs tupac way, but those VC's and Entrepreneurs are going at it.
Fred Wilson, a NY'er from A VC, has responded to an article by John Heilemann that essentially calls out NY'ers as a "sad-assed backwater when it comes to the Internet industry".
As John's article says - "$3.4 billion (has been) invested in fledgling Internet firms in 2007, the most torrid pace since the height of the Web 1.0 mêlée."
Something to think about - will Google really let the bubble pop?
Either way, I do think that the bubble bursting isn't a bad thing - reset peoples crazy mind-sets, and get back to building interesting, truly innovative and useful technologies that have a hope of having a viable business model!