Ok, I'll take the bait and be the first to disagree.

I felt the same way during my first few start ups.  However, I now realize that if I'm unable to manage my own time, how can I expect to manage others' time, or my even run my own business.  Having seen several dozen business succeed and fail, I can assure you - Start ups are a marathon, not a sprint.

Let's examine the concepts and I'll try to explain what I mean.

My Only Hurdle is Me
Odd that you would consider yourself a hurdle.  I would say that your only asset is you, and you should manage your asset well.  Managing yourself well, means sleep - so that you are sharp and able to focus . . . . ah focus.  Working smart is the cure for all ills, not more work.  Being smart is being focused.

I would also say that if you have more than one priority (well, I'll even give you 3), then you haven't planned your business well enough, let alone your time.  Sure there may be a few crunches in the course of your business life, but if you are experiencing them more often than once or twice a month, then you need to focus.  My meetings with entrepreneurs revolve around a few simple concepts, and one of the key concepts is having no more than three priorities. 

Trust me, if you always do the most important thing, and ignore the million other things, you will race ahead of the pack.

My Competition Sleeps
Once upon a time, I had competition in my industry that was much more experienced.  We perceived ourselves as miles ahead, on the cutting edge, and locking down an industry with single provider tendencies.   Three years later, the slower, more focused competition bought my business.

Sure we made a lot of money, but the purchaser ran it for two more years and sold it for several times what they paid for it.

I Stay Up for Everyone Else
I find that you get the most out of people when you give them clear direction - simple attainable goals that can be measured and "rewarded." 

If you provide an employee with ways to win, and the freedom and encouragement to improve their work, then they will awe and amaze you.  There is simply no way that one person can have the experience of ten.  As an entrepreneur, your goal is to empower the ten, not try to out think them.  I would go so far as to say that if your employees can't improve their work in meaningful ways (and do it better and faster than you), then fire them, and find some that can.

The Market Won't Let Me Sleep
Markets reward value, not lack of sleep.  Rather than working harder, figure out "why" your "EVP just got hired away to a faster growing company."  Why is company x growing more quickly?  I bet it's not because they are all avoiding sleep.  Similarly, "the new competitive product that's sweeter than ours", well, I bet it's just a better design that responds to the market . . . which comes from focus and planning. 

You can pound a million nails into a board, and then decide to pound two million nails into a board, . . . and it'll never be a house.

I'll Sleep When I'm Dead
Well, technically that isn't sleep. 

Nevertheless, I can assure you that one thing sleep deprivation brings more quickly is death. 

Conclusion
Please understand, I applaud a great work ethic just as much as the next guy.  However, I question the definition of the ethic. 

For me, when you work, work like a prize fighter and hit it as hard as you can.  Know exactly what you are trying to get done, and get it done as efficiently and effectively as you possibly can. 

Just include in your plan, recovery, rest, planning, training, etc.  It will get you there faster then just working harder.

I completely agree with you! My friends bug me about not sleeping all the time... why don't I take a break and go out with them. It's actually not only my friends, but my family as well. I think startup life = your personal life (funny, I just wrote about this today on my blog – check it out at http://abuddingentrepreneur.blogspot.com). There's no getting around it. It's simply what it takes.

I also find that during the few times I force myself to attend family events, I'm just not there. Someone will undoubtedly always make a comment about how I'm in a daze and that my attention is not present. It's very true! The startup life takes over your mind. I believe it has to though. In addition to the reasons you’ve listed above of why you don’t sleep, I think a major one is “the fear of failure”. Not many people want to admit this one, but I think it’s what also keeps us paranoid… in other words; it’s that alarm that goes off in our head. Maybe it’s for us first time entrepreneurs more than serial entrepreneurs; however I do think it plays a role.

I was formerly an investment banker that decided to leave and start my own company, so I was used to pulling 100 works weeks and never sleeping. However, it's a little different this time around, although I work pretty much the same 100 hour work weeks, it’s for myself. It’s the “I’m my own hurdle” one, where it’s all up to you to make it happen.

For all of us startup founders who don’t sleep, keep in mind that your life is like a movie. Enjoy the making of it! Wil – I don’t think you dread it, right? I think we all enjoy it… that’s why we don’t sleep.

@ Stephen - I don't think I was advocating sleep deprivation per se.  I was pointing out that in order to remain competitive, startup founders are constantly on the job trying to push themselves ahead. 

I constantly find myself awake late at night or early in the morning trying to work harder and faster than my competition.  People envision that person as some ragged unhealthy person that's totally stressed out and miserable.

It's the polar opposite.

I'm so incredibly excited about the companies I get involved in that I love what I do.  I love staying up late working on new ideas. 

Notice that in the article I didn't talk about being upset and angry about staying up.  I do it because I love the competition.