I don't think this is true. People are lazy, they won't want to make all the creative decisions and play test to figure out what is fun.

What is true is that the price points are going to be affected, the economics have changed.

At least it makes quite clear the point that shipping machine code isn't a bullet proof solution against shipping bytecode instead.

Closed source downloadable software is "dead" unless it doesn't require you to login to their servers at the start of the game and acts as a thin client.

These publishers will find a way to lock it down for new games and tie it to their servers to run it, or have the game streamed to you; simulated via a world model or not.

Most people are not Hacker News posters. This is like saying "cabinet manufacturers are dead" -- but normal people don't like making their own cabinets, they just want them and are willing to pay for them.

Maybe for now, but hard to predict this will hold in the future. Where there is strong economic motivation to secure software, innovation in protective technologies inevitably follows.