Non-scammy people tend to use the term "lifestyle business", because they're painfully aware of the number of hucksters promoting the idea of passive income. The obvious example in these parts is patio11, who has described and exemplified a straightforward and non-scammy way of building a sustainable business that pays the bills and doesn't place huge demands on your time.

Your list misses:

4) Build a quality product that serves and established need for a niche market and market it directly, using scalable methods