Nobody has pointed out the fault in this reasoning yet, so I will.
The linear relationship lines-of-code vs. total-bug-count is based on independence of bug introduction in different parts of the code. That is, introducing a bug in line 10000 is more-or-less independent of adding line 20000. For product code that is arguably the case, but adding test code into the mix, this basic assumption doesn't just not hold, but it's turned upside down.
Test code is not customer-visible, but only dev-visible, with the sole purpose of finding bugs. Thus, adding test code to a code base decreases the average probability of a bug for lines of product code. More formally, if you have N lines of product code and thus c * N bugs for some fraction c, then adding M lines of test code does not increase the number of customer-visible bugs to c * (N + M). Instead, it reduces that number to c' * N with c'<c and the difference being caused by your test coverage. (A 100% test coverage, i.e., an exhaustive test without bugs or, equivalently, a formal verification, would bring c' to 0.) Sure, the M lines of test code may well have bugs on their own, but that only increases c' slightly while keeping it below c, and more importantly, those test bugs are not customer-visible. They only annoy developers.
I agree with the rest of the post though.