To my reading, the article suggests that the reason why we have waterfall style development is because some guy at the DoD misread Winston Royce's paper.

"In 1985 the US Departement of Defense wanted a documented process for software development: DOD-STD-2167. Since governments and companies reused these requirements, it radiated across the world from there"

I contend that there are more fundamental reasons for this, so even if this quirk of history had never occurred, we'd still see a lot of waterfall development.