Interesting. I just know a few of the Summer 07 (I think?) YC groups came out of Davis--and they all seem really smart and capable. YC doesn't care about schools (much) and smart and capable people can come from any school, so this is probably not meaningful.
My original comment may have been a bit harsh. I'm sure there's a lot of good people both in the faculty and in the student body. I actually don't know much about the CS department at all, so by all means listen to somebody else's opinion over mine.