This article is interesting because of the new and different approach to piracy. I agree with part where he basically says that free services will be paid for in the future somehow.
This is a good approach to handling that kind of piracy because that will invoke more creative thinking on a mass scale which will mean that the creative markets will be enriched.
However, there are other forms of piracy that will not fit correctly with your ideas.
For example, the fact that a book is tangible could be a reason why somebody might want to buy an O'REILLY book or anything that is tangible and that is also pirated. What if you couldn't buy an O'REILLY book because it was not published in print and that you can only buy it in digital print. And when you realised that could get it for free, you wouldn't really bother paying for it. O'REILLY would simply have to rely on ad revenues - just like newspapers do!
Soon the quality of knowledge in O'REILLY's books will become poor because they've become a company that sells ad space to other companies rather than good quality knowledge.
Software piracy is not the same as publishing piracy. Software, when it is pirated, is a potential customer lost to a company. Because if that customer can't get that software through piracy, he will have to pay for it.
Affordability is something companies will need to consider then because if they don't make it affordable to their customers, it won't be bought and they will move onto something that is free (like Open Source).
You're right O'REILLY, There's more than one way to do it. Except, some ways are better than other ways