I love this type of stuff too, but be aware ycombinator is a start up incubator - people showing off there wares is presumably encouraged, up to a point.
I don't think it qualifies as advertising. People come to Hacker News to see what hackers are working on. It's certainly a major reason why I come here.
Every Show HN post I've seen was interesting. Motivated me to start my own projects and polish them so I can show them here. It's a really good feeling when someone else submits your work and you get to talk about it.