The market is saying that those business models shouldn't exist.
This is true no matter what the number is. Slave labor enabled the American South to deploy business models that are impossible today. Doesn't mean it was good.
It's simply that tech was and still is an exploding sector and a ton of resources are poured into it. People who are experienced programmers now are just lucky enough to ride the wave. It won't last forever. But it's certainly real for now.
No he isn't. His point is that some potential business models need $X amount of software engineering work to have a viable product, has a potential customer base of $Y, and the market will bear a price of $P for the software. Gross income is $Y * $P.
All else being equal as SWEs get more expensive the amount of $X you can get drops. If that puts you below the threshold for a viable product and your business doesn't have the power to raise $P then you don't have a viable business.
This is obviously a simplistic example but the principle still holds.
I'm not sure where you're trying to go with that.