That's what it sounds like to me. The author is writing from the perspective of P&G (though he never makes that explicit) so of course there is tremendous value destruction from that point of view.

As you imply, it might be better to think of it as a shift of value from the producer to the consumer.

The internet is doing this all over the place (just ask the newspapers--plenty of the value they captured before the 1990s shifted to other outlets, and eventually into the consumer's pockets). The auto did this, every important technology does this.