It helps the consumer because if it's a good app, it allows you to better focus on that one task you're after. Reading the news, for example. I haven't had any of the problems he discusses with the NYTimes app, for example.
For the organization, the benefits of longer engagement are pretty obvious as well.
He's right about a lot of bad developers (and clueless execs) producing really crappy apps. He's wrong if he thinks that a lot of the bigger brands are still at that stage.