This is an inane argument. Limiting your liability isn't some kind of moral evil. The potential for harm due to defects always exists, and if you provide a good or service to someone, you have to negotiate with that person who will accept the liability for it.
Generic software licenses limit liability because it's usually much cheaper for the end user to assume the liability as they have far greater knowledge of their practical risks.
A developer can absolutely make an agreement in which he takes on the liability. He's going to need to be paid to take that liability on, to both spend the time to eliminate defects, but also to purchase insurance so that he isn't bankrupted when a defect inevitably gets through and causes harm.