Like most 37signals articles, this presents a platitude backed by two examples. There are thousands of companies that succeed with the opposite strategy, and thousands that do something simple and fail.
It's not even clear that Pinkberry succeeded because of its small product offering or due to some other factor. In fact, the first time I heard about it, a fan was raving about the incredible selection of toppings to choose from.
A whole economics thesis could be dedicated to a controlled study of which strategy is actually preferable. This being the internet, simple narratives tend to win over rigorous results.