One thing missing is that author is assuming that talented people will like to work in one place indefinitely.
With developers skipping boat every ~2 years on average how do you make sure you will keep such person in-house.
You can compensate people only up to some level but as they got bored or feel they can do something better with their time they will move. Not to mention family reasons or whatever else can happen in persons life. You can have talented dev today - next day he might be hit by a truck, if you run your business by relying on people you will be affected by such accidents, if you run your business as if everyone is interchangeable you won't. Even if they are not easily replaceable.
That "corporations are doing it wrong" premise is also wrong - somehow those big corporations are chugging along for decades. Of course they leave "lucky ticket" profits on the table, but that "lucky ticket" has risk of loss - which is missing from the text.
Yes with small focused team you can achieve great ROI in one off project but those are not projects that are done by big corporations. Then you have all the startups that usually fail.
Then leave alone "my friend's team was composed of people who had a track record of being highly effective across a variety of contexts" - seems like author does not understand how hard it is to find such people and assemble a team especially if you are BigCorp. That friend just got lucky to be in specific time and place and their experience. Especially if you read that they just wanted to hire another scapegoat - so it is just survivor-ship bias.