1. Some software patents are vague, overbroad, or not novel. 2. This is a software patent. 3. This patent is vague, overbroad or not novel.
It doesn't logically hold up. You may want to argue that we shouldn't have software patents as a matter of principle, but pointing to examples of bad patents doesn't prove this. The guidepost for me is RSA. To me, if you have patents, then RSA should be patentable. It was novel, it was useful, and the fact that it could be implemented in software doesn't change that.
This being about software patents is coincidental. This same story could be told by a tool manufacturer, or an MP3 manufacturer, or anyone else. The real issues are whether the patent is valid, whether they are infringing, and then, if we find that we don't like the consequences when all is played out, figure out where the breakdown between what is really good for innovation and what is actually happening is.
If you want to say no software patents, then someone needs to come up with a strong argument why a new way to build an amplifier that improves sound quality should be patentable, but a new way to compress audio files that improves sound quality should not be.
There's a lot that could be done with patent reform to make things better, but doing away with software patents is orthogonal to this.
Business practice patents are a different story. Most of them don't patent a "how to do X", they patent a "wouldn't it be cool if we did X". My example is that Amazon One-click was trivial to implement. There was no "how". The proof of this is that B&N worked around it by going back in and adding a second click. You couldn't work around a good patent in this kind of way.