Malstrom overreacted in his post, but he has a point about the danger that User Generated Content is for gaming from a business perspective, not from a user perspective. We may defend Wii Music, LBP, Trackmania, etc., but our standing is from a gamer's point of view. When we look at the business side of things, UGC is a double edge sword that can destroy a company in the long term.
LBP and Wii music, even though they sold many copies (over a million), they failed in the purpose to increase hardware sales. There was no dramatic increase in PS3 or Wii units when these games came out, and both companies appealed for that.
He stated that User Generated Content creates users, not customers. If a developer doesn't get this, they are in serious trouble. Not all customers are users and not all users are customers.
He differentiates Mods from UGC properly, he is a moder as he stated in his post abour warcraft 2 and 3 and the issues starcraft2 will have in the modding community. with a MOD one can create a tollaly different game (like counter strike that is nothing like Half-life) and if you are allowed to, you can even sell it. It's a totally new experience and some see a mod as their first step towards proper game development.
However, with User Generated Contend you are very limited to what the game gives you, you cannot create a differet game, but an extension of it. You cannot modify the gameplay or the game's essence. You do the same thing in an user generated level than in a level included in the game (with just a few differences). And this is what Malstrom attacks and I agree with him.
User Generated Content is a double edge sword that in 90% of the cases harms the developer, because of the implicit danger the concept has even though the purpose is really good: extend the game's lifetime indefinately.
Games that have UGC are ussually games with poor content compared to the ones that do not have it. Developers can become lazy and leave the creativity to the customers, which is the worst decision ever. If a develoepr wants to game with UGC very successful (hardware mover) it must have lots of professional content and leave some space for UFC, which is double the work for a develoer