I like how he calls it "feed the family" money and mentions an upper bound of 1.5 million USD ... he must have a large family that only eats caviar pasted lobster or something??
His point was that the money could be used for things like buying a home. After taxes that 1.5 million turns into a bit more than 1 million (assuming long term equity gains). And if you live in the bay area or Palo Alto, a million doesn't buy you much.