I don't think it was the first statement that led to the flagging, but the second one.
Anyone who thinks "India was better off under British rule" needs to read about the Bengal Famine that killed 3 million people from Bengal [1] -- a direct result of Churchill's basic idea that Indian lives were worth less than others [2]. This is not to mention the numerous previous atrocities, such as the Jallianwala Bagh Massacre [3], in which a garden was blocked off and troops ordered to fire into a massed crowd until their ammunition was exhausted.
I am usually not one to dust off the history books, but in my opinion, people who perpetrate this "Things were great under the British" meme (including pmarca) need at least some amount of education, and perhaps a little more empathy. Indians were absolutely considered as an inferior, secondary class by the British, and the lack of a few Apple stores is a small price to pay for avoiding that.
[1] https://en.wikipedia.org/wiki/Bengal_famine_of_1943
[2] http://www.bbc.co.uk/blogs/thereporters/soutikbiswas/2010/10...
[3] https://en.wikipedia.org/wiki/Jallianwala_Bagh_massacre