The essay is well written and has historic base. Nevertheless I did not like the pessimist conclusion.
1) I believe that a economy with an increasing number of startups in the long run is going to grow.
2) The people that try but fail, is going to have entrepreneurial experience that is going to be attractive to the successful startups and companies in recuperation.
The missing point in the article is the role that OS software has in the Internet Companies. The greater economic impact is the savings and flexibility that has companies to run on a OS platform.
I would like to hear an estimation of how costly would be to run the Internet with only proprietary software.