When I was just starting my career, I would have gladly worked for free as an intern to get my foot in the door of the industry. Now, I wouldn't have done it for -long-, but internships aren't supposed to last a long time. As it was, instead I spent a year unemployed, and then took a job as a stock clerk at a grocery store. That time would have been much better spent as an intern... Especially since I think I could have found a job after 3 months of being an intern. 6 at the most.
The reason his entire post is wrong is that the person DOES get something out of it. They get training (whether it was structured or not is a different matter) and they get experience. Guess what helps you get a job most in the IT industry? Experience.
As for being hired, any company worth their salt will offer a real job to anyone who shows skill. Job offers should never be automatic.