Doing it for a living certainly does take some of the fun out of it, and overworking in particular is both common and unhealthy.
That said, I don't think the presence of hackathons (or other such "scene" events) should be taken as evidence of the existence of a hacking community (or lack thereof).
Part of the point the author makes is that, unlike in the West, hacking/making is not a big deal. It's not a subculture or a statement, it simply is. One of the things I really despise about hackathons here is how much time they spend wallowing in their own cultural statement. Sponsored by Monster Energy? Check. Important investors as judges? Check. Nerf guns? Yep. Quadcopters flying everywhere? Yeeeep. In the end it feels like 50% creating stuff and 50% reinforcing your place in the Subculture.
In the same way the video game subculture is 50% enjoying video games, and 50% self-referential memes about its own subculture-ness.
When I first got started in programming it was on obscure forums on the Internet. I didn't participate in any "scene" events, I just wrote code, and collaborated with others online who wrote code. We did it for its own sake, not to win competitions or impress judges or hobnob with industry luminaries. We just did.
I'd venture that most of the hacking going on in the world (in the West or the East) is going on in backyards - both virtual and real. It's hard to gauge how much is going on precisely because they're just hacking and making, not preening their feathers ostentatiously and inventing capital-letter names for their movement.