That's all wonderful form consultant's point of view, but if everyone reasoned like this guy, there would be no open source software, no cheap consumer software, everything would be SaaS and... well, I'm not sure I would want to see a world like that.
Why not open source software? They actually say something like "you can be free, but you can't be cheap". Making money with OSS is not easy, but there are certainly ways to do it.
And for cheap consumer software, it's just that you need to be really big to win money being cheap. You can't do it as a one man company.