What the hell is he talking about? VCs routinely fund companies that don't have a business model or any near-term path to making "buckets of money". Twitter being a great example.
But still, you have all of the negatives you do with Facebook Apps (capricious overlords in total control of your fate) but with something like 5% of the user base. And while iPhone users are clearly more engaged with that platform than, say, Win Mo users, they're nowhere close to Facebook users.