I don't get this analogy at all. What is he saying, that consumers discriminate on the basis of price for both meat and hosting solutions? So what? This is hardly an insight. Most products and services are largely discriminated by price.

Meat is so cheap in the US due to a mix of lax regulation (around animal care, feed, bulking products, hormones etc) and various financial incentives (subsidies, tax benefits etc.). No idea what this has got to do with the costs of hosting or what the parellels are between the two industries.