Actually it doesn't. Those who strike gold will always make more than the shovel salesmen, just have much much lower odds. But, when the general population of gold diggers realizes the odds are poor the shovel salesmen will still go out of business.

I've always hated applying this hackneyed phrase to bubble tech, because the meta product makers end up being just as silly looking as the product makers when trends change, and often in a worse position for transition.