That's a fallacy, addressed by the site -- in short, the benefit gained by minimizing jams more than offsets the increased space between vehicles.
The author says much the same thing on his FAQ page:
If EVERY driver was to constantly maintain a HUGE space regardless of speed, then it would probably cause problems. The merge-zones might stop jamming, but the capacity of major highways would be reduced. On-ramps would become choked as traffic backed up into them, and there would be slowdowns extending far out into the countryside.
It is, of course, a purely theoretical problem, since there is no shortage of non-altruistic drivers.