This is an admirable display of tactics, but a poor general strategy. His repeated threats to leave, as well as lies about other offers, only worked because the company in question was already struggling and needed to hold onto him for fear of not finding a replacement. A more prominent and successful company would have jettisoned him as soon as it found a qualified and, in all probability, more loyal applicant.

However, the advice on initial negotiations is solid. Companies generally allow at least 15% headroom on their initial offer for negotiations, and potentially more for those with less industry recognition and thus less negotiating power. I've exploited this headroom in virtually every job I've gotten.