From the VB article - "The truth is that if your company sells hardware today, your business model is essentially over". And you are comparing a complete product with only hardware / software.

I agree with you when you say "Its all about the product", and even the VB author does ("No one can make money selling hardware anymore. The only way to make money with hardware is to sell something else and get consumers to pay for the whole device and experience"). That term "experience" encapsulates a lot of what you talk about in your article.

Both, the VB author and you actually talk about the same thing. You somehow dont see it that way.