Definitely a brilliant essay, but I might take issue with a possible interpretation of:
"It's very dangerous to let anyone fly under you. If you have the cheapest, easiest product, you'll own the low end. And if you don't, you're in the crosshairs of whoever does."
I definitely understand his point, but I am afraid others might not. This sort of mentality can lead you to under price your services greatly. I see it everyday. Our customers sell downloadables and just the other day some guy was trying to sell a brilliantly manicured and useful spreadsheet for $2. His competition charged $10-$15+ and looked 10x more confusing and horrible. He said he wanted to "sell the most possible and low price was the way to do it".
I think I may talked him into raising his price and testing a few different pricing schemes.
In short: "owning the low-end" isn't always the best way to go about it, you might be leaving a lot of money on the table and selecting a different set of customers.