Can't companies and products simply hit a natural limit? There are inherent limitations to any given "thing" and perhaps Twitter has found its own terminal velocity.
I think of craigslist when I read that. It's just a useful thing that works. Nothing else. I wish there were more things like that.
Perhaps not coincidentally, craigslist is not a public company.
Many companies could still be thriving today (e.g., Yahoo), if not for this destructive aspect of capital in our markets.
Do you prefer a tiny chance of becoming the next Facebook, or a good chance of building a stable business?
Do you prefer to fail 9 companies before finally founding the one that will have "reason defying growth" (or not) rather than build one solid business?
I'd say it depends on your character, but it's important to know what you want rather than blindly following Paul Graham and other VC prophets.
It's almost impossible to change a business model once it is operating at scale, but management tells capital it can happen all the time.