His article is pretty dark and I can not fully share the theoretical models. Clearly he wants to use a simple model for a visual representation and that is fine for the purpose. But the assumption of a fixed 4% increase in revenue is to simplistic for me. Either the product has some traction and success than the percentage numbers will be far higher, which totally changes the graphs dynamics or it does not generate sales. Than the product should be rather sooner than later changed or axed. 
There are many other reasons why business are not successful short term or long term, than just revenue/expenses.