A lot of what he says has been pretty well known for awhile ...
If you remove gaming (and a few other applications) from the equation there is very little need to upgrade the hardware of your PC more than every 5 years; a 1.5GHz Pentium 4 is still an excellent PC for surfing the web and word processing and is over 5 years old. This has resulted in most gamers upgrading less often to much more modest hardware; personally I plan to upgrade to a laptop sometime in 2008 from my X2 3800+ and Geforce 7800GT.
At the same time, to keep hardware sales high companies like ATI and nVidia have targeted the elitest gamer and offered dual card (and 2 GPU per card) solutions; on top of that physics processors and high end CPUs continue to grow in power. As much as people talk about the epic gap between the processing power of the XBox 360/PS3 and the Wii PC developers have been forced to deal with a similar gap for years; if your game can't run on the low end hardware you can never sell enough units to break even and if you don't take advantage of the high end SLi systems you will never get the hype you need to sell your game.
