Frankly, I wouldn't agree with the article, and call having different quality options at different prices, "price discrimination", even if consumers are discriminating based on price. That's just offering a selection of different products of varying quality and prices. No harm in that IMO.

It's more the reverse, wherein the service provider discriminates to charging people different amounts for the exact same good/service (not just different quality goods/services). IMO, this is more likely what people have a problem with.